Tax News

CCH (cch.taxgroup.com) reports:

The Pennsylvania Department of Agriculture has issued new guidelines and an application form for the resource enhancement and protection tax credit program (REAP). Under the REAP program, farmers and businesses that implement best management practices (BMPs) that will enhance farm production and protect natural resources may claim a credit against the corporate net income tax, the personal income tax, the capital stock/franchise tax, the bank and financial company shares tax, and the insurance gross premiums tax.
Eligible applicants may receive credits equal to 25% and 75% of project costs up to $150,000 per agricultural operation. In addition, farmers interested in purchasing no-till planting equipment may qualify for a 50% tax credit. The tax credit must be returned if the practice is not maintained for the life span of the practice.
Applications will be accepted by the State Conservation Commission on a first-come, first-served basis beginning January 2, 2008. Applications may be delivered in person, via U.S. Postal Service, or via a private carrier. Applications must be postmarked after December 26, 2007.
A project will be reviewed by the Commission and a determination on eligibility made within 60 days after receipt of a complete application. The first round of tax credits will be issued no later than June 30, 2008.
The guidelines provide additional information on general eligibility requirements, eligible project costs, steps that may be taken prior to the application period, and various program reminders.
The Agriculture Department has also announced that an educational meeting on no-till equipment purchases is scheduled for December 18, at the Pennsylvania Farm Show Complex & Expo Center in Harrisburg. Farmers, equipment dealers and manufacturers, county conservation district staff, and others interested in the no-till equipment requirements should make reservations for the meeting.
Subscribers to CCH Tax Research NetWork can view the Agriculture Department press release, credit application form, additional credit guidelines, and educational meeting reservation information.
Resource Enhancement and Protection Program Guidelines, Pennsylvania Department of Agriculture, December 2007, ¶203-734
Other References:
Explanations at ¶7-344
Explanations at ¶12-129
Explanations at ¶15-547
Explanations at ¶29-532
Explanations at ¶88-407