HARRISBURG, Pa. — Agriculture Secretary Russell Redding invited Pennsylvania farmers to apply for $13 million in tax credits available to support their efforts to improve soil health and water quality.
The department will begin accepting applications on Aug. 7 for Resource Enhancement and Protection (REAP) tax credits from agricultural producers who implement best management practices or purchase equipment to reduce nutrient and sediment runoff, enhance soil health and improve the quality of Pennsylvania’s waterways.
Tax credits through Pennsylvania’s REAP can be combined with other state funding, including the Agriculture Conservation Assistance Program, and Conservation Excellence Grants, as well as federal funding through programs like the Environmental Quality Incentives Program to help pay for on-farm enhancements that protect the environment and boost farm sustainability.
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, and Nutrient Management Plans. Measures that limit run-off from high animal-traffic areas, as well as cover crops and stream buffers that prevent erosion, keeping nutrients in the soil and out of the water, are also common practices eligible for tax credits.
Farmers may receive REAP tax credits of 50 to 75% of a project’s eligible out-of-pocket costs. Farmers whose operation is in a watershed with an EPA-mandated Total Maximum Daily Load 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. Baseline eligibility includes compliance with the PA Clean Streams Law and the Pennsylvania Nutrient and Odor Management Law.
Since the program began in 2007, REAP has awarded $147 million in tax credits for more than 8,500 projects. More information about REAP, including the 2023-24 application packet, program guidelines and sponsorship process, is available at agriculture.pa.gov. The deadline to submit applications is Oct. 31. Funds may run out before the deadline.
