Tax Credits Available to Farmers for Water, Soil Quality Investments
The Pennsylvania Department of Agriculture is now accepting applications for tax credits through the Resource Enhancement and Protection (REAP) program for agricultural producers who implement best management practices or purchase equipment to reduce nutrient and sediment runoff, which enhances soil and improves the quality of Pennsylvania’s waterways.
A total of $13 million is available to fund the tax credits. Recipients can combine the credits with other state funding, including the Environmental Quality Incentive Program, the Chesapeake Bay Program or Conservation Excellence Grants. Farmers may receive REAP tax credits of 50% to 75% of the project’s eligible out-of-pocket costs. Farmers whose operation is in a watershed with an EPA-mandated Total Maximum Daily Load (TMDL) can receive REAP tax credits of 90% of out-of-pocket costs for some projects. REAP applications are reviewed on a first-come, first-served basis. More information is available at www.agriculture.pa.gov.