Prevailing Wages May Not Apply to Farmers
In our post from last week we indicated to get the maximum 30% tax credit for qualifying projects that you needed to pay prevailing wages and have a registered apprenticeship program. After reading the Act in even more detail, it appears that these requirements do not apply to any facility with an output less than 1 Megawatt which is a large facility.
Therefore, almost any qualifying project that a farmer might do will qualify for the full 30% investment tax credit. However, many farmers invest in certain projects that might have these requirements.
We wanted to get this clarification out as soon as possible.
Also, many of these programs will need guidance from the appropriate governmental authority. As that guidance is issued, we will provide an update.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Is this “new” rate in effect for 2022?