HARRISBURG, PA — Pennsylvania farmers will be able to compete for $13 million in state tax credits beginning Aug. 1 to offset the cost of conservation projects that improve soil health and water quality, as the Shapiro administration expands incentives tied to agricultural and Chesapeake Bay restoration efforts.
Agriculture Secretary Russell Redding promoted the Resource Enhancement and Protection (REAP) program Thursday during the Pennsylvania No-Till Alliance’s Soil Health Field Day at Flinchbaugh Orchard in Hellam Township, encouraging producers to apply before funding is exhausted. Applications will be accepted on a first-come, first-served basis through Oct. 31, though the state cautioned that available credits may be claimed before the deadline.
The REAP program provides tax credits for farmers who install conservation practices or purchase equipment that reduces nutrient and sediment runoff, improves soil health and protects waterways. Credits may also be combined with other state and federal conservation funding.
Eligible projects include no-till and precision agriculture equipment, manure storage facilities, nutrient management plans, cover crops, stream buffers and systems designed to reduce runoff from livestock operations. The program also offers incentives for forested stream buffers and silvopasture projects.
Farmers may receive tax credits covering 50% to 75% of eligible out-of-pocket project costs. Operations located within watersheds subject to an EPA-mandated Total Maximum Daily Load may qualify for credits covering up to 90% of eligible expenses for certain projects.
“We’ve seen what the REAP tax credit program can do on our farm,” Flinchbaugh Orchards co-owner Mike Flinchbaugh stated. “When you’re looking at a big investment like new equipment, every dollar matters. REAP made that decision a whole lot easier.”
Private businesses and individual taxpayers may also participate by financing eligible projects in exchange for tax credits, a structure intended to help farmers obtain capital more quickly while improving lender confidence. More than 80 businesses have participated in the program.
Since its launch in 2007, REAP has awarded more than $200 million in state income tax credits supporting more than 10,000 conservation projects on roughly 4,000 Pennsylvania farms. According to the Department of Agriculture, those projects have prevented approximately 8 million pounds of nitrogen, 500,000 pounds of phosphorus and 400,000 tons of sediment from entering Pennsylvania waterways.
The announcement comes after Gov. Josh Shapiro signed the 2026-27 state budget, which continues funding for several agricultural initiatives, including $10 million for the Agricultural Innovation Grant Program and $13.8 million to fully fund the Pennsylvania Farm Bill. The administration also highlighted new funding for fruit growers affected by spring freezes and efforts to combat highly pathogenic avian influenza.
Additional information, including application materials and program guidelines, is available at agriculture.pa.gov.
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