Bill Latchford wrote: The farmers are asked to voluntarily help out and if they are doing something I wonder if they are being helped out by the State Government monetarily to do so?
Resource Enhancement and Protection Program (REAP) http://www.agriculture.state.pa.us/agri ... 3&q=145155
BACKGROUND
Act 55 of 2007 created the Resource Enhancement and Protection Program (REAP).
REAP 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 will be granted by the Pennsylvania Department of Revenue.
Eligible applicants may receive between 25% and 75% of project costs as state tax credits for up to $150,000 per agricultural operation. The amount of tax credit available to a recipient is dependent on the type of BMP implemented.
Up to $10 million in credits may be issued in fiscal year 2007-2008.
PARTICIPATION
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 taxpayer. (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)
USING REAP TAX CREDITS
Tax credits for 75% of eligible costs include the following:
Nutrient Management Plan, Ag. E&S Plan and/or Conservation Plan development
BMPs for animal concentration areas and barnyard runoff, stream bank fencing and 50 foot forested riparian buffers.
Tax credits for 50% of eligible costs include:
operation, design and equipment to reduce existing sediment and nutrient concerns
stream bank fencing and 35 foot riparian buffers.
Eligible BMPs and equipment approved by the Commission for tax credits of 50% may include:
manure storage systems
alternative manure treatment practices
filter strips, grassed waterways, management intensive grazing systems
no-till planting equipment.
Tax credits for 25% of eligible costs include remediation of legacy sediments (after July 1, 2008).
No tax credit will be provided for a publicly funded portion of a project.
The tax credit is to be returned if the practice is not maintained for the life span of the practice.
Tax credits can only be awarded to projects completed after the effective date of the Act, which is October 23, 2007.
ELIGIBLE PROJECT COSTS
The following are eligible costs of a project to which a tax credit may be applied:
Project design, engineering, and associated planning
Project management costs, including constructing, document preparation and applications
Project construction and installation
Equipment, materials and other eligible project components
Post construction expenses
Interest payments on loans for project implementation for up to one year prior to the awarded of the tax credit.
Any of the above services provided by a Conservation District
A tax credit may not be applied to any portion of the project cost for which public funding was received.
SOME REMINDERS
REAP differs from traditional conservation programs. It is a tax credit where, unless the farmer works with a sponsoring business, the farmer must finance all up-front costs. The tax credit is issued after the installation of a practice, or purchase of eligible equipment. State or federal cost-share portions of a project are ineligible for REAP tax credits.
Some producers owe few, if any, state taxes. REAP tax credits can be used for up to fifteen 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. An accountant or other financial professional can advise farmers on the benefits of REAP for their operation.
REAP tax credits may also be sold, and there are individuals and corporations that wish to reduce their tax liability by purchasing tax credits. Several brokers in Pennsylvania help arrange tax credit transfers.