The House Agriculture and Rural Affairs Committee will hold an informational meeting September 19 on House Bill 2878 (Stern-R-Blair, Hershey-R-Chester, Daley-D-Washington) that would create the Resource Enhancement and Protection Tax Credit Program.

The Resource Enhancement and Protection Tax Credit Program (REAP) would provide farmers and landowners with business or personal state tax credits to cover their cost for installing best management practices that will reduce nutrients and sediments going into rivers and streams.

Tax credits of between 25 and 75 percent, up to a total of $150,000, would be provided to clean up barnyards, plant forested buffers, install stream bank fencing and remove legacy sediments from floodplains.

The program would allow the tax credits to be sold and transferred to others or rolled ahead for up to 15 years.

Also included is a sponsorship program that allows businesses to finance projects on farms and receive a tax credit for their investment.

The Senate Agriculture and Rural Affairs Committee held a public hearing that included the Senate companion bill – Senate Bill 1286 (Wenger-R-Lancaster, Waugh-R-York, O’Pake-D-Berks) -- last week.

The House Agriculture Committee is chaired by Rep. Hershey (R-Chester) and Rep. Daley (D-Washington).

Issue NoteBook: Resource Enhancement & Protection Tax Credit Proposal

9/8/2006