Resource Enhancement and Protection Program

Resource Enhancement and Protection Program (REAP)
REAP is a tax credit program for businesses and agricultural producers who install “Best Management Practices” (BMPs) or make equipment purchases that reduce erosion and sedimentation that impacts Pennsylvania’s streams and watersheds. The program, administered by the State Conservation Commission, gives agriculture producers an incentive to purchase conservation equipment and materials to better protect the environment.

The following state taxes are eligible to participate in REAP: 
• Personal Income Tax
• Corporate Net Income Tax
• Capital Stock and Franchise Tax
• Bank Shares Tax
• Title Insurance Company Tax
• Insurance Premiums Tax
• Mutual Thrift Institutions Tax

Eligible applicants may receive either 50% or 75% of project costs as state tax credits for up to $150,000 per agricultural operation. The amount of tax credit available to a recipient is dependent on the type of BMP implemented. 

Program Requirements for Conservation, Agricultural E&S, Nutrient and Manure Management Plans

An agricultural operation that is interested in applying for the REAP Tax Credit Program for agricultural BMPs or equipment must first have in place the following:
1. An approved conservation plan/agricultural E&S plan for all acres plowed and tilled.
2. An approved nutrient/manure management plan (if required) in the program year that you are applying.
3. All BMPs necessary to properly treat an Animal Concentration Areas (ACAs) or brown lots under your management control. 

For additional information including a full list of eligible BMP’s and the FY 2015-16 Application, please visithttp://www.agriculture.pa.gov/Protect/StateConservationCommission/REAP/Pages/default.aspx#.VwgC-PkrLcs
 The FY 2016 round of REAP is set to open soon. The SCC will begin accepting applications for completed projects on August 1, 2016. Applications that involve proposed projects will be accepted beginning August 15, 2016. Applications will be accepted on a first-come, first-served basis. A deadline for applications will be established as funding is exhausted. Attached is the FY 2016 REAP Guidelines and Application packet – also available on the REAP webpage at: ​ http://www.agriculture.pa.gov/Protect/StateConservationCommission/REAP
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Below are a few of the BMPs/projects for which farmers can use REAP to help offset out-of-pocket expenses and also a few revisions to the FY 2016 Program.

1. Precision Nutrient Application Equipment: Introduced to the Program in FY2015, precision ag components that are necessary to enable variable rate spreading of nutrients are eligible for REAP credits – at 50% of purchase price. For FY2016 the REAP dealer certification page for this equipment (p13) has been revised to provide clarity and make the process more efficient.
2. Planning: Conservation/Ag E&S Plans and Act 38 Nutrient Management/ Manure Management Plans are eligible for REAP credits at 75% of out-of-pocket costs. The Commission is highlighting this opportunity for farmers to offset the cost of planning to coincide with PA’s efforts to increase the number of farms in compliance with State law.
3. Cover Crops: REAP provides credits for 50% of the cost of establishing cover crops. Plantings of multi-species cover crops are eligible for higher reimbursement.

For FY2016, there is a slight revision of the dealer certification page for Low Disturbance Residue Management Equipment (p12). All other aspects of the program remain unchanged from FY2015