REAP Signed Into Law

Gov. Rendell this week signed legislation into law giving his approval to the $10 Million Resource Enhancement and Protection Act (REAP) that gives farmers tax credits for installing conservation practices.

REAP was a bipartisan measure included in Senate Bill 97 (D.White-R-Indiana) that made several other changes to the Tax Code. The bill now becomes Act 55. The bill provides personal and business state tax credits ranging from 25 to 75 percent of the cost to install best management practices like barnyard improvements, riparian buffers, stream fencing and other practices. The development of manure management plans on farmlands, and forested buffers on non-farm lands, would also be eligible for credit. Each farmer enrolled in the program is eligible for up to $150,000 in tax credits which can be extended over a period of 15 years. Businesses that sponsor such conservation projects will also be eligible for corresponding tax credits. There is no limit on amount of tax credits a business sponsoring projects on farms can be awarded. The REAP Program will take effect on October 23 and will be administered by the State Conservation Commission. Applications for the REAP tax credit will be on a first-come, first-served basis, so potential applicants are encouraged to start to put together the plans and information they need now in order to apply by the deadline to be set by the Commission.  http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=7294&SubjectID=