State Conservation Commission Now Accepting Applications For $13 Million In REAP Farm Conservation Tax Credits - First-Come, First-Served
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On August 5, Agriculture Secretary Russell Redding invited Pennsylvania farmers to apply for $13 million in Resource Enhancement and Protection Farm Conservation Tax Credits available to support their efforts to improve soil health and water quality now through September 1. Applications are considered on a first-come, first-served basis from agricultural producers who implement best management practices or purchase equipment to reduce nutrient and sediment runoff, enhance soil health and improve water quality across the mid-Atlantic region. REAP provides tax credits at levels of 50%, 75%, or 90% of costs incurred in the implementation of Best Management Practices (BMPs), including planning and engineering, materials, labor, etc., depending on the practice. Pennsylvania tax credits are issued after the installation of a practice or purchase of eligible equipment, and state or federal cost-share portions of a project are ineligible. Applicants must have up-to-date Agricultural Erosion and Sedimentation (E&S) Plans or Conservation Plans and Manure/Nutrient Management Plans for all acres farmed. Tax credits can be combined with other state funding, including the Agriculture Conservation Assistance Program, and Conservation Excellence Grants, as well as federal funding to help pay for farm enhancements that protect the environment and boost farm sustainability. Private investors may act as project sponsors by providing capital in exchange for tax credits, which allows farmers to receive funds quicker and increases lenders' confidence. Over 80 businesses have participated in REAP by sponsoring BMP projects on farms; or by buying REAP tax credits from farmers. Any individual or business subject to taxation by Pennsylvania through personal income tax, corporate net income tax, the bank shares tax or others is eligible to participate in REAP. There are a few updates and changes to the program to ensure opportunities for farms of all sizes and types, so be sure to check it out to determine eligibility! Find more information, visit the State Conservation Commission’s Resource Enhancement and Protection Farm Conservation Tax Credit Program webpage. Questions should be directed to Joel Semke, the REAP Program Administrator at 717-705-4032 or jsemke@pa.gov. FY 2024-25 State Budget The new state budget includes new investments in agriculture innovation and conservation to keep Pennsylvania a national leader. New investments include a $10 million Agriculture Innovation Fund, plus a new state investment of $35 million to continue Clean Streams Fund support for Agriculture Conservation Assistance Program (ACAP), and another $5 million for the Nutrient Management fund. Roughly $85 million of the $154 million federal American Rescue Plan dollars Pennsylvania invested in ACAP are helping more than 1,200 farmers improve conservation on their farms since January 2023. New state investments will continue that momentum and be magnified further by current historic level of state and federal conservation investments. Pennsylvania farms increased no-till acres by 2.3% since 2017 to nearly 1.65 million statewide, and cover crop acreage by 7.9%. No-till and cover crops are among the conservation practices improving waterways, building healthier soil, and building bottom lines by reducing input costs and improving yields. The impact of Pennsylvania's conservation investments – by farmers and government – are evident in this month's announcement of the best health report the Chesapeake Bay has had in more than two decades. Read more here. Click Here for the complete announcement. 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8/12/2024 |
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