"Farmers across the Commonwealth face the challenges of complying with changes to nutrient and sediment management practices on a daily basis, which often means upgrading their equipment and the way in which they do business," Brubaker said. "However, they need the right tools and funding to be able to make improvements and still maintain viable businesses."

The Pennsylvania Resource Enhancement and Protection (REAP) Tax Credit Program introduced by Senator Brubaker will provide transferable tax credits for installing proven and cost-effective best management practices to reduce pollution and sediments coming from farms. These practices include improvements to barnyards, pastures and riparian corridors, development and implementation of nutrient management plans, remediation of legacy sediments and other approved practices.

Tax credits will be available for personal and corporate income tax, the Capital Stock and Franchise Tax, and Sales and Use Tax. Qualified applicants will receive a tax credit of 25 percent to 75 percent of the project cost, depending on the practice implemented. Other elements of the program provide that tax credits may be sold to other entities and for business or individual sponsorship of a project installed by a landowner. Tax credits may be carried over for a maximum of 15 years.

"Tax credits are already being used to encourage the growth and progress of business in other industries with success, so it makes sense to extend their use to the agriculture industry as well," Brubaker said.

Brubaker also indicated that the tax credits will benefit not only farmers, but the environment and ultimately every citizen in the Commonwealth and the Chesapeake Bay watershed as well.

"Under the 2000 Chesapeake Bay Agreement, Pennsylvania and the other states that are part of the Agreement must reduce nutrient and sediment pollution going to the Chesapeake Bay by more than 38 million pounds by 2010," Brubaker said. "This will go a long way to cleaning up the watershed and to move the Bay off the U.S. Clean Water Act's list of impaired waters."

"REAP provides an outstanding opportunity to improve water quality and address the needs of Pennsylvania producers," said Matt Ehrhart, PA Executive Director for the Chesapeake Bay Foundation.  "This proposal already has broad, bipartisan legislative support, as well as the endorsement of the agricultural, sportsmen, and environmental communities."

"The creation of the REAP program would be a win-win situation for farmers and the environment, and I plan to continue looking for other innovative ways that we can provide these types of benefits to the Commonwealth," Brubaker added.

The REAP legislation was introduced by former state Senator Noah Wenger, whose district Brubaker now represents, in 2006, but did not receive approval from the General Assembly prior to the end of the 2005-2006 session.

  Print this page

 E-mail this page