REAP Farm Conservation Tax Credit Nearly Reaches $10 Million In First Week

The State Conservation Commission this week reported it has in hand over $9.6 million in applications for Resource Enhancement and Resource Protection (REAP) farm conservation tax credits, nearly exceeding in the first week of applications the hoped-for appropriation of $10 million.

Farmers can receive tax credits of up to $150,000 per agricultural operation for 50 or 75 percent of the total cost of a conservation project, depending on the best management practice implemented. Farmers may also qualify for a 50 percent tax credit to purchase no-till planting equipment.

Agriculture contributes a significant amount of nitrogen and phosphorus pollution to watersheds all over the state, but especially the Chesapeake Bay. With increasing pressure on Pennsylvania to meet water quality regulations, farmers need options to help them decrease pollution and soil erosion. REAP is designed to fulfill that need.

If the current numbers hold and the program is funded this year, it means at least $60 million in farm conservation practices have been funded through the REAP tax credit program-- at least $30 million by farmers themselves and $30 million with state funding.

At this point in the budget process, it is not yet certain whether the REAP Tax Credit Program will be kept at the existing $10 million level or changed.

Gov. Rendell's proposed budget included $10 million for REAP. The proposed Senate Republican budget did not specifically eliminate the REAP tax credit, however, their budget would eliminate $250 million of the $324 million allocated for all tax credits.

For more information, visit the REAP Program webpage or contact Mary Bender at 717-787-8821 or by sending email to: mabender@state.pa.us.