Sen. Wenger

By Senator Noah W. Wenger, 30th Senatorial District

In today's world, the areas of agriculture and environmental protection continue to become ever more entwined. For instance, the fertilizers used by farmers can seep into the groundwater, while livestock that pastures along a stream can break down the banks of that waterway, adding more sediment and increasing runoff of those fertilizers. Fortunately, many of our farmers recognize the need to be good stewards of the land.

While farmers have already undertaken some voluntary measures, there is still a demonstrated need for programs to further assist in the implementation of effective best management practices. The cost of complying with new laws and regulations that mandate the protection of our environment can place a severe strain on farmers, who must upgrade equipment and/or change the way they do business.

In order to help agriculture operations remain environmentally friendly and to encourage the expansion of these practices, I have introduced legislation which would establish the PA Resource Enhancement And Protection (REAP) Tax Credit Program. This innovative alternative will provide farmers with the type of financial assistance currently being used to promote the growth and progress of other industries.

The REAP Tax Credit will promote private investments in a variety of proven and cost-effective best management practices, including improvements to barnyards, pastures and riparian corridors; development of nutrient management plans; remediation of legacy sediments; and other approved practices. To ensure that this program meets the highest standards in conservation practices, all projects must meet design and construction standards set by the USDA Natural Resources Conservation Service or the State Conservation Commission, or be certified by a registered professional engineer.

Credits will be available for personal and corporate income tax, the Capital Stock and Franchise Tax, and the Sales and Use Tax, and will be administered for 25 to 75 percent of the project cost, depending on the project implemented. Also, these tax credits may be sold to other entities and for business or individual sponsorship of a project installed by a landowner. The credits may be carried over for a maximum of 15 years.

In addition to the local benefits to farmers and our environment, the impact will reach even farther to help our Commonwealth meet its obligations under the Chesapeake 2000 Agreement. This Agreement requires Pennsylvania and other states in the Chesapeake Bay watershed area to reduce nutrient and sediment pollution going to the Bay by more than 38 million pounds a year by 2010. In doing so, we can help move the Bay of the U.S. Clean Water Act's list of impaired waters.

The agriculture industry is a driving force in Pennsylvania's economy. We need to continue looking for ways to help farmers maintain profitable businesses as we ask them to meet increasing standards in environmental and conservation practices. The REAP Tax Credit will provide this necessary support for agriculture producers, and in turn make Pennsylvania a cleaner and greener place to work and live.

Senator Noah W. Wenger represents the 30th Senatorial District in Lancaster and Chester counties. He can be contact through his website.

Note: Rep. Stern and Sen. Wenger introduced House Bill 2878 (Stern R-Blair, Hershey-R-Chester, Daley D-Washington) and Senate Bill 1286 (Wenger R-Lancaster, Waugh R-York, O’Pake D-Berks), the Pennsylvania Resource Enhancement and Protection (REAP) Tax Credit Program.

8/25/2006