Tax Breaks Proposed for Pennsylvania Farmers Who Protect Water Quality

A new legislative proposal would give tax credits to farmers and businesses that sponsor farm projects to help reduce water pollution across Pennsylvania. 

The bipartisan Resource Enhancement and Protection Act of Pennsylvania (REAP) would provide assistance to farmers in the form of state tax credits to install best management practices to reduce water pollution. The bills provide 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, management plans, and other practices. To provide flexibility, tax credits under REAP may be sold by a taxpayer who does not have a tax liability to another taxpayer who does. Taxpayers can also roll tax credits forward to cover future tax liabilities for up to 15 years. The REAP Program would help Pennsylvania meet its obligations under the 2000 Chesapeake Bay Agreement to reduce nutrient and sediment pollution going to the Chesapeake Bay. Bills to establish the REAP Program have been introduced in both Houses of the Pennsylvania Legislature. http://www.cbf.org/site/News2?page=NewsArticle&id=19747 

Environment News Service (ENS) August 17, 2006