Guidelines for sale of REAP tax credits

REAP tax credits FAQs
REAP tax credits broker list


Pennsylvania’s Resource Enhancement and Protection Program, also known as REAP, enables the conservation of agricultural resources by giving tax credits in exchange for the implementation of Best Management Practices.  Eligible participants may receive between 50% to 75% of project costs, up to $250,000, in tax credits.

There are three possible ways to participate in REAP.  The farmer can implement BMPs and receive state tax credits.  The farmer can sell the tax credits to another Pennsylvania taxpayer.  Or a sponsor can finance someone else’s BMPs and receive the tax credits.

All farmers participating in REAP must have a conservation plan and a nutrient management plan or manure management plan.  If a farmer does not have these plans, the cost of developing them must be applied in the tax credit before any other BMPs are paid.

Some of the BMPs that are eligible for REAP tax credits include:  Development of a Nutrient Management Plan, Ag E&S Plan, and Conservation Plans, stream bank fencing, riparian buffers, BMPs for ACAs and barnyard runoff,  manure storage systems, alternative manure treatment practices, filter strips, and no till planting equipment.

Costs that can be included are project design, engineering, and planning, construction, installation, equipment, materials, post construction expenses, and many others.

To download REAP application forms and guidelines and for more information about the program, visit the Pennsylvania Department of Agriculture Website or click here.


Comments are closed.