State tax credits available
The State Conservation Commission started accepting applications for REAP, the state tax credit program, on Aug. 7.
Tax credits are awarded on a first-come, first-served basis and range from 50 percent to 75 percent depending on the practice installed.
The current guidelines and application can be found here: www.agriculture.pa.gov/Protect/StateConservationCommission/REAP/Pages/default.aspx.
Practices are eligible for conservation best management practices and equipment purchased after Oct. 23, 2007, as long as life span of the practice hasn’t expired. Some of the more common practices for funding are no-till equipment, nutrient management plans, and out of pocket expenses on NRCS projects. Funding for no-till equipment covers new and used implements and can be considered for a proposed purchase.
Used equipment requires a dealer to certify the planter or drill is in good working order.
Cost share is up to 50 percent equipment purchases and is something everyone should take advantage of if they’ve purchased or will purchase a planter.
Nutrient management plans are covered at 75 percent along with any structural practices that address animal concentration areas. These practices include concrete heavy use areas, manure storages, roofs and their associated practices.
The rest of eligible NRCS practices are covered at 50 percent which include grazing system practices, cover crops and other cropland practices. These credits are eligible for use by individuals who pay any state tax for up to 15 years or can be sold.
There are brokers who will sell credits for you; however, they will take a percentage as a transaction fee in addition to the purchase price. These brokers can be bypassed if the farmer sells the credits himself, which is fairly common.
Andy Gaver is a conservationist with the USDA Natural Resources Conservation Service in Butler County.