Pa. farmers can get tax credit for conservation

HARRISBURG, Pa. — Pennsylvania farmers who want to use best management practices or purchase on-farm conservation equipment can now apply for tax credits through the Resource Enhancement and Protection (REAP) program.

REAP is a tax credit program for agricultural producers who install best management practices or make equipment purchases that reduce erosion and sedimentation that impacts Pennsylvania’s streams and watersheds.

The program, administered by the State Conservation Commission, gives agriculture producers an incentive to purchase conservation equipment and materials to better protect the environment.

Up to $150,000

Farmers may receive tax credits of up to $150,000 per agricultural operation for 50 or 75 percent of the total project cost. The most common projects approved are for no-till planting equipment, waste storage facilities, conservation plans, nutrient management plans, and protecting heavy animal use areas like barnyards.

Deadlines

Farmers who have completed projects may submit applications now, while those with proposed projects can submit applications beginning Aug. 25.
The projects will be considered on a first-come, first-served basis.

Applications for the 2014-2015 REAP program area available at www.pda.state.pa.us/REAP under “Forms,” or by contacting Joel Semke at 717-705-4032 or jsemke@pa.gov.

Any individual or business subject to taxation through personal income tax, corporate net income tax, bank shares tax or others is eligible to participate in REAP.

Outcomes

Since the program began in 2007, REAP has awarded tax credits to 3,500 projects totaling $41.7 million. Public and private enterprises investments in REAP have contributed to the conservation projects, worth more than $145 million. REAP has helped reduce an estimated runoff of nearly 12 million pounds of nitrogen, 878,665 pounds of phosphorus and 881,966 tons of sediment through 2011.