Pennsylvania has opened its Resource Enhancement and Protection program for 2021-2022. The program offers state tax credits to help farmers implement conservation practices that improve soil and water quality.
There is $13 million in REAP credits available this year, which will be allocated on a first-come, first-served basis.
REAP tax credits are available to agricultural producers who implement best management practices or purchase equipment that reduces nutrient and sediment runoff. Farmers may receive up to $250,000 in any seven-year period, and spouses filling jointly can use REAP tax credits.
Examples of funded projects include no-till planting and precision ag equipment, waste storage facilities, conservation plans, nutrient management plans, barnyard runoff controls, cover crops, and riparian stream buffers.
Farmers may receive REAP tax credits of 50 to 75 percent of the project’s eligible out-of-pocket costs. Farmers whose operation is in a watershed with an EPA-mandated total maximum daily load, such as the Chesapeake Bay Watershed, can receive REAP tax credits of up to 90 percent of out-of-pocket costs for some projects.
Tax credits can be used in conjunction with other funding sources such as the Environmental Quality Incentive Program, the Chesapeake Bay Program or Conservation Excellence Grants.