Monday, August 27, 2012

Applications Now Being Accepted For REAP Farm Conservation Tax Credits

Pennsylvania farmers can take advantage of nearly $7 million in tax credits to purchase on-farm conservation equipment or install facilities meeting best management practice standards through the Resource Enhancement and Protection Farm Conservation Tax Credit, or the REAP program.
Producers with proposed or completed projects can submit applications immediately. The projects will be considered on a first-come, first-served basis.
REAP is a tax incentive program for agricultural producers who enlist private support to reduce erosion and sedimentation that impacts Pennsylvania’s watersheds.
The program, administered by the State Conservation Commission, helps producers with the purchase of conservation equipment and materials to help protect the environment.
“REAP helps producers farm for the future without compromising the needs of the present,” said Agriculture Secretary George Greig. “This program has helped producers improve their operation while advancing the health of our watersheds.”
Private investors often provide capital to producers as a project is approved in return for tax credits. Any individual or business subject to taxation under Personal Income Tax, Corporate Net Income Tax, Bank Shares Tax and others, is eligible to participate in REAP.
The program began in 2007 and since then 2,609 projects worth more than $39.5 million have been approved. The public and private investment made to implement these projects is $68.7 million.
REAP has helped reduce more than 11 million pounds of nitrogen, 859,485 pounds of phosphorus and 877,059 pounds of sediment through 2010.  
Farmers can 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, materials for waste storage facilities, manure management plans and protecting heavy animal use areas like barnyards.
Applications for the 2012-2013 REAP program are available on Agriculture’s REAP webpage or by calling 717-787-8821.

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