State makes $10M in tax credits available to farmers

© Shutterstock

Pennsylvania’s Resource Enhancement and Protection Program (REAP) will make available $10 million in tax credits to farmers for improving soil and water quality.

The tax credit program was created for agricultural producers who implement best management practices or who purchase equipment that reduces runoff, enhances soil, and improves the quality of waterways.

Farmers are eligible for up to $250,000 in any seven-year period. REAP credits are up to 75 percent of the project’s eligible out-of-pocket cost. Farms in a watershed with an EPA-mandated Total Maximum Daily Load can receive 90 percent of out-of-pocket costs.

Projects that normally received REAP credits include conservation plans, nutrient management plans, waste storage facilities, no-till planting and precision ag equipment, riparian stream buffers, protecting animal heavy-use areas, and cover crops.

“Farmers are the original stewards of our land and water resources,” Agriculture Secretary Russell Redding said. “REAP tax credits are just one element of our strategy to support their stewardship and grow a viable, sustainable Pennsylvania farm economy to feed our future.”

Farmers can use REAP tax credits in conjunction with Conservation Excellence Grants, the Chesapeake Bay Program, or the Environmental Quality Incentive Program.

Projects must comply with the Pennsylvania Nutrient and Odor Management Law and the PA Clean Streams Law.