HARRISBURG – July 1st, 2019 — State Sen. John Sabatina (D-Philadelphia) announced the passage of his agricultural tax credit proposal, as a component of the Tax Code (Act 13 of 2019). The Governor has signed the bill into law as part of the FY2019-2020 budget.
Senator Sabatina’s proposal, introduced as SB-622 expands the widely utilized Resource Enhancement and Protection program (REAP) that assists eligible farmers, landowners and businesses to earn tax credits for implementing “Best Management Practice” (BMPs) that will enhance farm production and protect natural resources.
Sabatina shared, “This program incentivizes agricultural operations to pursue better business and conservation practices that produce better outcomes for farms and our environment.”
Tax credits are available for commission approved best management practices or equipment necessary to reduce existing sediment and nutrient concerns, including: manure storage systems, no-till planting equipment, grassed waterways, rotational grazing systems, etc. Eligible projects also include stream bank fencing with grassed or forested riparian buffers, which help reduce farmland run-off from entering waterways.
Sabatina’s SB-622 joined the package of bills presented as part of Gov. Tom Wolf’s “PA Farm Bill” initiative.
The approved expansion increases the REAP program by $3 million, raises the lifetime cap to $250,000 from the current $150,00 per agricultural operation, and offers support for new eligible best management practices.
Interested applicants can contact the State Conservation Commission at (717) 705-4032, or can learn more by visiting the PA Department of Agriculture’s website.