REAP is a first-come, first-served program that enables farmers, businesses, and landowners to earn PA income tax credits to offset the cost of implementing conservation practices. Tax credits provided by the REAP program help farmers offset the costs of implementing best management practices (BMPs) that benefit their farms and work to protect water quality at the same time.
The Commission will begin accepting 2025-26 REAP Applications on August 1st, 2025, on a first-come, first-served basis. The deadline for submitting 2025-26 REAP applications is September 30th, 2025.
Guidelines and Uses
Eligibility for the program is based on compliance with the PA Clean Streams Law.
For agricultural operations, this means:
- Up-to-date Agricultural Erosion and Sedimentation (E&S) Plans and Manure/Nutrient Management Plans for all acres farmed.
REAP tax credits may be used to pay PA income tax for any individual or entity that has PA income tax obligations, dollar-for-dollar, for up to 15 years from the date of issuance.
The credits can be sold or transferred one year after issuance.
Agricultural operations are eligible for up to $250,000 of REAP tax credits in a 7-year period.
Non-ag businesses and individuals can earn PA REAP tax credits by sponsoring an eligible project.
Funding Opportunities
REAP provides tax credits at levels of 50%, 75%, or 90% of costs incurred in the implementation of BMPs that reduce nitrogen, phosphorus, and sediment pollution.
- Projects eligible for 50% reimbursement: no-till planting equipment; precision nutrient application equipment; manure storage structures; cover crops; grazing practices; forested riparian buffers; others
- Projects eligible for 75% reimbursement: BMPs that reduce pollution runoff from animal concentration areas; Nutrient/Manure Management Plans; Conservation/Ag E&S Plans; others
- Projects eligible for 90% reimbursement (In an ag-impaired watershed) - multi-species cover crops; forested riparian buffers (50+ ft wide); livestock exclusion from streams and associated practices; others
2025-2026 Agricultural Program Updates
Practice Enhancements
- Expanded Focus Areas
Increased emphasis on rotational grazing systems, cover crop implementation, and specialized equipment for cover crop management. - New Conservation Practice
Introduction of integrated erosion control and habitat buffer BMPs.
Eligibility & Reimbursement
- Simplified Cover Crop Requirements
Farmers maintain REAP tax credit eligibility without mandatory transition to multi-species cover crops. - Standardized Reimbursement Rates
- Cover crop rollers: 90% statewide
- Multi-species cover crops: 90% statewide
Financial Adjustments
- Increased Equipment Caps
- PUKs: $100,000
- Precision nutrient applicators: $80,000
- Reduced BMP caps
- REAP-eligible purchase price for new/used no-till equipment lowered to $250,000 per unit.
- Cover crop costs: $70,000
Reminders
- Tax Credits are awarded on a first-come, first-served basis and applications are accepted until available tax credits for the year are exhausted.
- REAP differs from traditional conservation programs. PA tax credits are issued after the installation of a practice or purchase of eligible equipment. State or federal cost-share portions of a project are ineligible for REAP tax credits.
- Through REAP's sponsorship program, another business could help finance a project and apply for the tax credit instead of the producer.
- An accountant or other financial professional can advise farmers on the benefits of REAP for their operation.
- REAP tax credits may be sold, and there are individuals and corporations that wish to reduce their tax liability by purchasing tax credits. Several brokers in Pennsylvania help arrange tax credit sales.