Are you looking to apply to the REAP assistance program? Rosetree Consulting can help you fill out the application, decide what practices are REAP Eligible, and ensure your farm meets eligibility requirements.
Pennsylvania’s Resource Enhancement & Protection Program (REAP) provides state income tax credits to farms that implement new Best Management Practices that result in less agricultural runoff of sediment, nitrogen, and phosphorus. Our customers have used REAP to help offset the costs of no-till planting equipment, manure storage, animal heavy-use areas, and low-disturbance manure injection equipment. The full list of REAP-eligible practices can be found in the REAP guidelines. Download the REAP application here.
Most people are familiar with REAP tax credits for corn planters, drills, and manure storage. However, we should consider utilizing the program in a few other ways.
Nutrient Management Plans & Conservation Plans:
CAFO & CAO operations require an updated Act 38 NMP every three years; farms importing manure from CAO/CAFO operations require Nutrient Balance Sheets every three years. Any farm producing or utilizing manure is required to implement a Manure Management Plan. In addition, every farm is required to implement soil conservation plans on all acres they manage. 75% of your total invoice for plan development, including the background work needed for plan development, is eligible for REAP tax credits.
Precision Variable Rate Nutrient Application Plans:
New for 2024, Precision Ag plans developed for Variable Rate applications are REAP eligible at 75% of your total invoice. This includes the data management, grid soil testing, Nitrogen Modeling, & prescription development necessary for a variable rate application. They are eligible at 90% when the applicant is located in an ag-impaired TMDL watershed.
Equipment Performance Upgrade Kits:
Also new for 2024, any no-till planter or fertilizer spreader upgraded for precision nutrient placement capabilities or automatic variable rate application capabilities is eligible for 50% of the total invoice, up to $70,000 per purchase.
Here’s what’s new to REAP for 2024-25:
- An increased focus on soil health and multi-species cover crops. Applicants who have received REAP tax credits in the past for single-species cover crop are eligible for multi-species cover crops only.
- Cover crop planting drones are eligible for REAP tax credits – up to $10,000.
- “Sunset Provision” for older equipment; 20 years for no-till equipment, 10 years for precision ag equipment
- Ag operations are limited to one REAP-eligible project per round of the program. The intent of this change is to ensure that smaller ag operations are not being squeezed out of the program.
Talk to a Rosetree Consultant to see how you can use REAP Assistance on your farm in Pennsylvania.
