REAP: $13 Million in Tax Credits Available for On-Farm Conservation

The Pennsylvania Resource Enhancement and Protection (REAP) Program is open. There are changes in the REAP Program that were included in the 2019 PA Farm Bill legislation that was signed into law by Governor Tom Wolf in July.

Here is a summary of what’s new for the 2019-20 REAP Program:

  1. REAP funding – REAP’s allocation of tax credits was increased from $10 million to $13 million. The increase will allow the program to approve significantly more applications from farmers for the 2019-20 round of REAP. REAP’s $10 million allocation in 2018 was exhausted by 232 approved applications.
  2. REAP credit cap – The REAP credit cap was raised from $150,000/agricultural operation (lifetime limit) to $250,000/agricultural operation in any 7-year period.
  3. Filing status – REAP participants may now file jointly with a spouse when claiming the credit. REAP credits can now be used against all income of the credit recipient and the spouse. This makes the credit much easier to use and much more valuable to farm families.
  4. Legacy Sediment – Legacy sediment projects are eligible for REAP credits at 50% of out-of-pocket installation costs. Previously, the REAP law set the reimbursement rate at 25%

The State Conservation Commission is now accepting 2019-20 REAP applications on a first-come, first-served basis. The 2019 REAP Program application packet can also be found on the REAP webpage.

REAP is a Pennsylvania tax credit program for agricultural producers who install BMPs or make equipment purchases that reduce nutrient and sediment runoff, which improves Pennsylvania’s streams and watersheds. More information is available here and on the REAP webpage:

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