Beginning tomorrow (June 15), you can apply for Pennsylvania's popular Resource Enhancement and Protection conservation tax incentive funding for 2011-12. Visit the above link for all details plus downloadable applications.
In brief, it provides state tax credits for best management practices like no-till planting, improving waste storage facilities and reducing erosion in heavy animal use areas such as barnyards. Eligible applicants may receive between 50% and 75% of project costs as state tax credits for up to $150,000 per agricultural operation. The amount of tax credit available depends on the BMP.
Tax credits for 75% of eligible costs include: Nutrient management plan, conservation plan development, BMPs for ACAs and barnyard runoff, stream bank fencing with 50-foot forested riparian buffers, and 50-foot forested riparian buffers.
Tax credits for 50% of eligible costs include: Any approved BMP or equipment necessary to reduce existing sediment and nutrient concerns, such as manure storage systems, alternative manure treatment practices, filter strips, grassed waterways, management intensive grazing systems and no till planting equipment. Stream bank fencing with 35-foot riparian buffers (grassed or forested) is also covered.
Application approval and funding will still depend on adoption of the state budget. Assuming the highly popular program is funded, approval by the State Conservation Commission would begin on Aug. 1 on a first-come, first-served basis.
REAP tax credits can be used by the farmer for up to 15 years, and are transferable and can be sold to other taxpayers. Through REAP's sponsorship program, another business could help finance a project and apply for the tax credit instead of the producer.
REAP tax credits may be sold to individuals and corporations wishing to reduce their tax liability by purchasing tax credits. Several brokers in Pennsylvania help arrange tax credit transfers.
For more details, you can also contact Amy Smith, REAP program administrator at (717) 787-8821. Or e-mail: [email protected].