Pennsylvania farmers now have a second opportunity to apply for the first come, first served Resource Enhancement and Protection Program (REAP) tax credits that reward farmers for installing conservation practices that reduce erosion and sedimentation.

Applications will be accepted starting August 4 with postmarks after July 30.

"Pennsylvania is committed to helping farmers maintain viable businesses, and to improving conservation practices that protect water quality," said Agriculture Secretary Dennis Wolff. "Farmers need support in this time of rising production and energy costs, and programs like REAP provide a win-win for everyone."

REAP is administered by the State Conservation Commission and encourages farmers to use conservation best management practices to reduce erosion and sedimentation impacting Pennsylvania's streams and watersheds.

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.

Applicants are encouraged to work with local county conservation districts or the Natural Resources Conservation Service before applying to ensure current plans are in place for each farming operation, including conservation, agricultural erosion and sedimentation control, and nutrient management plans, if required.

Guidelines and applications for the 2008-09 Resource Enhancement and Protection tax credit program are now available now online. For those without Internet access, the commission can mail an application.

Part of the PA Fair Share for Clean Water Plan to reduce nutrients from wastewater treatment plants and farms called for an increase in the REAP tax credit from $10 to $35 million to help them meet this federal Clean Water Act mandate imposed by the Department of Environmental Protection, but the General Assembly and Gov. Rendell failed to take action on that proposal.

For more information about the program, contact Program Administrator Mary Bender at 717-787-8821 or send email to: mabender@state.pa.us . The Department of Revenue also has available a special tax credit publication with more background.

Link: CBF, Fair Share Coalition Fight for Clean Water Funding in State Budget

7/25/2008