Good Monday Morning, all.
Associate Editor Cassie Miller here. I will be filling in for John this week.
Pennsylvania farmers who invest in best practices and equipment to improve water and soil quality in an effort to make their farming operations more sustainable are eligible to receive tax credits for their investments, according to state officials.
The Resource Enhancement & Protection (REAP) program, a first-come, first-serve Pennsylvania income tax credit designed to offset the cost of adopting more sustainable farm practices totals $13 million in available credits for the 2022-23 tax year.
“Farmers have led the way, investing heavily in cleaner water and productive soil to sustain us in the future,” state Agriculture Secretary Russell Redding said. “REAP tax credits are just one of many ways Pennsylvania invests in our farmers’ efforts to grow a sustainable farm economy to feed our future.”
The credits can be used to offset the costs of sustainability and conservation projects such as no-till planting and precision ag equipment, waste storage facilities, conservation plans, and Nutrient Management Plans.
REAP credits can also be used on measures that limit run-off from high animal-traffic areas like barnyards, as well as cover crops and riparian stream buffers that prevent erosion and keep nutrients out of streams are also common REAP-eligible practices, according to the department.
“Farmers may receive the tax credits on 50 to 75 percent of the project’s eligible out-of-pocket costs, and baseline eligibility includes compliance with the PA Clean Streams Law and the Pennsylvania Nutrient and Odor Management Law, the department confirmed last week. “If a farmers’ operation is in a watershed with an EPA-mandated Total Maximum Daily Load (TMDL), the farmer can receive REAP tax credits on 90 percent of out-of-pocket costs for some projects.”
While the REAP program has been around since 2007, the program has seen four consecutive increases in funding and eligibility since the PA Farm Bill was implemented in 2019.
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Originally published at www.penncapital-star.com,by Cassie Miller
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