Mary Bender, REAP Administrator State Conservation Commission

1. Welcome to a REAP Update Mary Bender, REAP Administrator State Conservation Commission Ag Environment Partnership Webinar, March 3, 2009

2. Resource Enhancement and Protection (REAP) Program Mary Bender, REAP Administrator State Conservation Commission

3. Overview of Today Presentation • Overview of REAP Program • REAP FY08-09 Status Summary • Using/Selling a REAP Tax Credit • Fiscal Year 2009-2010 – What Next? • Compliance

4. Overview of REAP Program • The REAP Program has received funding allocations in the State fiscal year 2007-08 and 2008-09 • Overview of the program

5. REAP FY 2007-08 Overview • The FY 2007-08 REAP appropriation was $10 million • Applications were accepted by the SCC on January 2, 2008 on a first come, first served basis • The entire $10 million was allocated to eligible projects within 10 business days • Approved REAP Tax Credits continue to be awarded to eligible REAP applicants as the BMP’s are completed.

6. REAP FY 2007-08 Status Summary * Difference = withdrawn BMPs or application where total costs were less than the approved eligible amount.

7. REAP FY 2008-09 Overview • The FY 2008-09 appropriation was $10 million • Applications were accepted by the SCC on August 2, 2008 on a first come, first served basis • The entire $10 million was allocated to eligible projects on the first day • Over $13.5 million in applications were received on the first day • Approved REAP Tax Credits continue to be awarded to eligible REAP projects as they are completed

8. REAP FY 2008-09 Status Summary * Difference = withdrawn BMPs or application where total costs were less than the approved eligible amount.

10. Using or Selling a REAP Tax Credit • The first REAP tax credits were granted beginning in March, 2008, so credits will begin to be eligible for sale in March 2009. • On January 22, 2008, the State Conservation Commission approved revised guidelines and an application for the sale or assignment of REAP tax credits. • These documents have been mailed to all approved REAP applicants and are posted on the REAP website. (www.agriculture.state.pa.us/REAP)

11. Sale/Assignment Application

12. Using or Selling a REAP Tax CreditFrequently Asked Questions • What can I do with the REAP Tax Credits once I receive them? • The tax credit must be applied against the applicants own tax liability for the first year. • The applicant may choose to hold the credit and use it for up to 15 years. • The applicant may sell the tax credit after one year from the date issued.

13. Using or Selling a REAP Tax CreditFrequently Asked Questions • Which taxes can the REAP tax credits be used for? • Personal Income Tax, Corporate Net Income Tax, Capital Stock and Franchise Tax, Bank Shares Tax, Title Insurance Company Tax, Insurance Premiums Tax, and Mutual Thrift Institutions Tax.

14. Using or Selling a REAP Tax CreditFrequently Asked Questions • I want to sell my tax credit, what do I do? • The tax credit must be applied against the applicants own tax liability for the year in which it was issued. • Apply to the State Conservation Commission for the sale/assignment of the approved unused tax credit, one year from the date the credit is granted by the Department of Revenue.

15. Using or Selling a REAP Tax CreditFrequently Asked Questions • Do I need to hire a broker or agent to sell a REAP Tax Credit? • No - While the State Conservation Commission is aware of brokers/agents who may assist in the sale of REAP tax credits, an applicant is not required to use the services of a broker to sell a REAP tax credit.

16. Using or Selling a REAP Tax CreditFrequently Asked Questions • Where can I find more information about selling/assigning tax credits? • Guidance documents from the PA Department of Revenue are posted on the SCC website at: www.agriculture.state.pa.us/REAP

18. Guidance from PA Department of Revenue

19. Fiscal Year 2009-2010 – What’s Next • The Governor’s proposed fiscal year 2009-2010 budget includes a $10 million appropriation for REAP. • The SCC plans to release 2009-10 REAP guidelines and applications in June 2009, and plans to accept completed applications beginning August 3, 2009. • Applications will be accepted on a first-come, first-served basis

20. Fiscal Year 2009-2010 – What’s Next • BMPs which are completed, or equipment which is purchased or delivered, this spring are eligible for REAP tax credits in the 2009-10 funding round. • No major changes to the guidelines are anticipated.

21. Fiscal Year 2009-2010 – What’s Next Frequently Asked Questions • My application was not approved last year due to lack of available credits, do I have to reapply this year? • Applicants will be mailed a short “re-application” which may be used as a 2009-10 application. These applicants may chose to “re-activate” their 2008-09 application, but must still compete in the first-come, first-served approval process.

22. Compliance • All Best Management Practices which were approved for the award of REAP tax credits have a “lifespan”. Practices must be maintained for the number of years established in the guidelines. • The SCC will conduct compliance checks on completed practices beginning Spring 2009 to ensure that the practices which were awarded are being properly maintained.

23. Questions & Answers www.agriculture.state.pa.us/REAP Mary Bender REAP Administrator State Conservation Commission

24. Next REAP WebinarMarch 11, 20092 PM to 3 PMProgram SponsorState Conservation Commission Ag Environment Partnership webinar site hosted by Penn State University – College of Agricultural Sciences Pennsylvania Cooperative Extension and the Agriculture & Environment Center www.aec.psu.edu