The Resource Enhancement and Protection Program (REAP) is designed to enhance farm production and protect natural resources by enabling farmers, landowners, and businesses to earn Pennsylvania state income tax credits in exchange for implementing Best Management Practices (BMPs).
Donor Name: State Conservation Commission
State: Pennsylvania
County: All Counties
Type of Grant: Grant
Size of the Grant: $250,000
Grant Duration: 7 years
Deadline: 11/18/2022
Details:
REAP is a first-come, first-served program that enables farmers, businesses, and landowners to earn PA income tax credits to offset the cost of implementing conservation practices. Tax credits provided by the REAP program helps farmers off-set the costs of implementing best management practices (BMPs) that benefit their farms and work to protect water quality at the same time.
Thirteen million dollars in REAP tax credits is available in FY 2022 to individuals and businesses that meet the eligibility requirements for the program.
Applicants are eligible for a maximum of $250,000 in any 7-year period, per agricultural operation.
Project Eligibility
The following are considered eligible costs of a project:
- Project management costs – including design, engineering, and associated planning
- Project construction or installation – including labor provided by the applicant
- Post construction certifications
All REAP-eligible BMPs must be necessary to reduce pollution from nitrogen, phosphorus, or sediment runoff into surface waters.
Eligibility Criteria
To be eligible for the REAP program, an applicant must meet the following criteria:
- The applicant must be an individual or business who is subject to taxation by the Commonwealth of Pennsylvania under the following state taxes: Personal Income Tax, Corporate Net Income Tax, Capital Stock and Franchise Tax, Bank Shares Tax, Title Insurance Company Tax, Insurance Premiums Tax, and Mutual Thrift Institutions Tax.
- The agricultural operation must be in compliance with the PA Clean Streams Law. As such, the operation must have the following:
- A current Agricultural E&S Plan or Conservation Plan that meets the requirements found in Chapter 102.4 of the PA Clean Streams Law for all acres operated by the applicant. The applicant must be onschedule for full implementation of the plan.
- A current Nutrient Management Plan; as required by Chapter 83 of the PA Clean Streams Law and Act 38; or Manure Management Plan; as required by Chapter 91 of the PA Clean Streams Law for all other operations that have animals and/or import manure; for all acres operated by the applicant. The applicant must be on-schedule for full implementation of the plan.
- An agricultural operation with animal concentration areas (ACAs) on any portion of the operation under its management control must first implement all BMPs necessary to abate nutrient, sediment, and storm water runoff from these areas prior to receiving tax credits for other REAP-eligible BMPs. Any REAP-approved BMPs necessary to properly treat an ACA are eligible for REAP tax credits. REAP tax credits may be awarded for development of Nutrient/Manure Management & Ag E&S/Conservation Plans prior to full
implementation of ACA-related BMPs. - If the applicant does not have up-to-date Plans on all acres operated, the REAP application must include documentation of the development of these plans. No REAP tax credits will be awarded for any other eligible BMP or equipment until plans are complete and certified. Applicants to the REAP program must have their eligibility verified on page 4 of the REAP application.
For more information, visit Resource Enhancement & Protection Grant.
