Resource Enhancement and Protection Program (REAP)

The REAP Tax Credit Program (established 2007, amended by Act 13 of 2019) incentivizes private investment in water-quality best management practices on agricultural operations in compliance with the Pennsylvania Clean Streams Law. Farmers, landowners, and businesses earn Pennsylvania state income-tax credits to offset the cost of implementing water-quality BMPs. First-come, first-served; administered by the Pennsylvania State Conservation Commission.

• Individuals or businesses subject to Pennsylvania income tax (Personal Income Tax, Corporate Net Income Tax or Bank Shares Tax).

• Agricultural operations need current Agricultural Erosion and Sediment Control Plans for all acres operated.

• A current Nutrient or Manure Management Plan if animals are present or manure is applied.

• Full implementation of runoff BMPs for Animal Concentration Areas, if applicable. If plans or these BMPs are missing, the application must include them.

• Projects must treat existing water-quality concerns by reducing nitrogen, phosphorus or sediment pollution.

• One project per operation per funding round; PACS-certified farms may submit more.

• Non-farm businesses and individuals can earn credits by sponsoring an eligible farm project.

• Pennsylvania income-tax credits at three levels: 50% (eligible equipment, waste storage, field erosion BMPs, single-species cover crops); 75% (Animal Concentration Area BMPs, plans, riparian forest buffers); 90% (multi-species cover crops, stream crossings and livestock exclusion, extended riparian forest buffers, no-till equipment with a riparian forest buffer, cover crop roller/crimpers).

• Up to $250,000 in credits per agricultural operation over any seven-year period. $13 million in credits is available for fiscal year 2026.

• Credits pay PA income tax dollar-for-dollar for up to 15 years and can be sold or transferred one year after issuance.

• Credits are issued after the practice is installed or equipment is bought, and only for out-of-pocket costs; state or federal cost-share portions (such as EQIP or ACAP) don't count.

The PA State Conservation Commission accepts 2026-27 applications from August 1, 2026 (PACS-certified and PA Farmland Preservation farms from July 1, 2026); first-come, first-served; deadline October 30, 2026. Mail to SCC REAP Tax Credit Program, 2301 N Cameron St, Harrisburg PA 17110-9408, or email RA-AGSCC-REAP@pa.gov.