Resource Enhancement and Protection Program (REAP)
What is REAP?
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The Resource Enhancement and Protection (REAP) program allows farmers and businesses to earn tax credits in exchange for "Best Management Practices" (BMPs) on agricultural operations that will enhance farm production and protect natural resources.
The program is administered by the State Conservation Commission (Commission) and the tax credits are awarded by the Pennsylvania Department of Revenue. Eligible applicants may receive between 50% - 75% of project costs as state tax credits for up to $250,000 in a 7 year period per applicant. The amount of tax credit available to a recipient is dependent on the type of BMP implemented. |
How can farmers participate?
There are three ways for farmers to participate in the REAP program - Self, Sell, or Sponsor
- Implement eligible BMPs and receive tax credits directly to reduce a state tax bill. (Self)
- Sell tax credits to another Pennsylvania tax payer. (Sell)
- Work with a sponsor that will help finance a farmer's BMPs. The farmer will be compensated for making improvements and the sponsor will receive the tax credit. (Sponsor)
What do farmers need to have in order to be eligible for REAp?
1. Current Plans - Agricultural operation must have a current:
2. Properly Protected Barnyards - An agricultural operation with an animal concentration area (ACA) such as a barnyard or loafing area, must have implemented the BMPs to abate storm water runoff, loss of sediment and nutrients, and runoff of other pollutants for the ACA, or the implementation of these BMPs must be included in the application for a tax credit.
3. Fully Implemented Crop Field and NM BMPs - An agricultural operation with uncompleted BMPs required in an Ag E&S plan and / or a nutrient management plan must first include the remaining BMPs included in these plans in the application for a tax credit.
- Conservation plan (or an NRCS approved grazing (528) plan).
- An Agricultural Erosion and Sedimentation control plan (Ag E&S plan). This plan is part of a properly written Conservation Plan.
- A Nutrient Management Plan, if required (for CAO or CAFO) or a Manure Management Plan for any operation with livestock.
2. Properly Protected Barnyards - An agricultural operation with an animal concentration area (ACA) such as a barnyard or loafing area, must have implemented the BMPs to abate storm water runoff, loss of sediment and nutrients, and runoff of other pollutants for the ACA, or the implementation of these BMPs must be included in the application for a tax credit.
3. Fully Implemented Crop Field and NM BMPs - An agricultural operation with uncompleted BMPs required in an Ag E&S plan and / or a nutrient management plan must first include the remaining BMPs included in these plans in the application for a tax credit.