Rep. Jerry Stern (R-Blair) this week announced the introduction ofHouse Bill 2801to expandthe already highly successfulResource Enhancement and Protection (REAP)farm conservation tax credit program from $10 to $35 million.

“Fostering a strong economy in the Commonwealth has always been a priority for the General Assembly. However, it often goes unnoticed that the basis of a significant portion of our economy is derived from stable farming communities,” said Rep. Stern. “Although the General Assembly has taken action on a number of measures to ensure that farming communities are able to flourish, further improvements must be made to the recently enacted REAP program to advance best management practices on Pennsylvania farms and continue to spur the economy within Pennsylvania’s farming community.”

REAP applicants may receive a tax credit from 25 percent to 75 percent of the project cost (worth up to $150,000 per farm), to help producers pay for eligible BMPs intended to mitigate the potential environmental impact of their farming operations. Examples of such practices include improvements to barnyards, pastures and riparian corridors, development and implementation of nutrient management plans, and remediation of legacy sediments.

Rep.Stern’s legislation would allow farmers to immediately sell unused REAP tax credits to business entities. As the law currently stands, farmers are only able to sell tax credits after waiting for one year. The purchasing business entities can then apply the credits to their own tax liability. The farmer is then able to reinvest the capital earned from these sales into their farm.

Additionally, his legislation would increase the monetary cap amount available to fund the tax credit from the current $10 million to $35 million.

“All $10 million in tax credits for this budget for the REAP program was approved for use in just one day,” said Rep. Stern. “Obviously, this program is more successful than we originally anticipated it would be and, therefore, we need to make sure the funding is there to meet demand and help stimulate continued environmental protection practices.”

House Bill 2801 has the support of thePennsylvania Fair Share for Clean Water Coalition, which includes the Chesapeake Bay Foundation, Pennsylvania Farm Bureau, Pennsylvania Builders Association, Pennsylvania Municipal Authorities Association, the Pennsylvania Association of Conservation Districts and over 40 other environmental, business, outdoor sportsmen and farm organizations.

9/26/2008