PA Dept. of Agriculture Reminder: Still Time To Apply For REAP Farm Conservation Tax Credits

On December 20, Agriculture Secretary Russell Redding reminded farmers to apply by January 31, 2022 for $13 million in tax credits for measures to improve soil and water quality. 

Tax credits are available through Pennsylvania's nationally recognized Resource Enhancement and Protection Program (REAP), which was expanded under the PA Farm Bill.

REAP is a Pennsylvania tax credit program for agricultural producers who implement best management practices (BMP) or purchase equipment that reduces nutrient and sediment runoff, enhancing soil and improving the quality of Pennsylvania's waterways. 

Farmers may receive up to $250,000 in any seven-year period, and spouses filing jointly can use REAP Tax Credits. 

The most common projects approved are for no-till planting and precision ag equipment, waste storage facilities, conservation plans, Nutrient Management Plans, and protecting animal heavy-use areas, like barnyards. 

Cover crops that help soil retain water, carbon and nutrients, and planted buffers that keep sediment out of streams are also commonly funded projects. 

Farmers may receive REAP tax credits of 50 to 75 percent of the project's eligible out-of-pocket cost. 

Farmers whose operation is in a watershed with an EPA-mandated Total Maximum Daily Load (TMDL) can receive REAP tax credits of 90 percent of out-of-pocket costs for some projects.

Almost 350 farms in 54 Pennsylvania counties were approved for REAP tax credits in 2019-20. 

Tax credits can be used in conjunction with other funding sources such as the Environmental Quality Incentive Program (EQIP), the Chesapeake Bay Program or Conservation Excellence Grants to help install BMPs. 

In 2020-'21, applicants used $5 million in other funding to pay for projects receiving REAP tax credits.

REAP applications are reviewed on a first-come, first-served basis. Baseline eligibility includes compliance with the PA Clean Streams Law and the Pennsylvania Nutrient and Odor Management Law.

Click Here for more information about REAP, including the 2021 application packet and program guidelines.   Questions should be directed to Joel Semke at 717-705-4032 or jsemke@pa.gov. 

Related Articles:

-- DCNR Awards $333,991 Grant To Stroud Water Research Center For Multifunction Riparian Forest Buffer Pilot Project 

-- PA Treasury: Agri-Link Low-Interest Loan Program Supports Agricultural Best Management Practices 

-- Lancaster Clean Water Partners To Begin Accepting Applications For Clean Water Implementation Grants On Jan. 4 

-- PA Lake Management Society Accepting Applications For Project Mini-Grants

[Posted: December 20, 2021]  PA Environment Digest