REAP Returns This Summer

Chris Torres
Staff Writer

Get ready. A second round of REAP is coming this summer.

Confident it will receive the necessary state funding to open up the second round of REAP (Resource Enhancement and Protection program) tax credit applications, the Pennsylvania State Conservation Commission will make applications available in June and will start accepting them in August.

As with last year’s program, it will operate on a first come, first served basis.
Mary Bender, administrator of the state’s REAP program, said Gov. Ed Rendell’s proposed budget includes about $10 million dedicated to REAP, just like the previous program.

All of last year’s funds were applied for within 10 days, after the application process was opened up in December.

Bender said the commission stopped accepting applications when they hit $12.5 million in tax credit requests.

Since only $10 million was made available, Bender said the remaining farmers with requests would have to re-send their applications. But she added those farmers would not have to fill out new applications, so long as their information did not change.

Bender added this year’s application will be changed to be more user friendly, with a better explanation of the program and even checklists so farmers know what information they need to supply to the state.

“Tax credits took a little more explanation about how it worked and what it meant,” she said. “It was just new.”

REAP allows farmers to receive tax credits when they use “best management practices” on their farm.

To be eligible, farmers must have a conservation plan as well as an agricultural erosion and sedimentation control plan and, if necessary, a nutrient management plan.

The costs of developing these plans may be included to qualify for the tax credit.

The tax credits can be used to pay state tax bills when implementing practices that are considered environmentally friendly on the farm. In addition to work such as barnyard improvements, manure storage upgrades and streambank fencing, farmers can receive tax credits for pieces of conservation equipment they purchase, such as no-till implements.

Farmers may also sell their tax credits to another taxpayer.

Lamonte Garber of the Chesapeake Bay Foundation said increased demand is the reason the foundation asked for $35 million in tax credits this year along with the introduction of a traditional grant program.

“A lot of legislators we’ve spoken to realize that time is running out on the Chesapeake Bay mandate and we need to do things this year,” he said.

But he concedes the $10 million figure is more realistic at this time.

“We are very confident there will be at least that original amount for this year,” he said.