Section 8704-E - Tax credits(a) General eligibility.--Projects shall be eligible for a tax credit as follows: (1) Only best management practices completed after the effective date of this article shall be eligible for a tax credit.(2) An agricultural operation shall have in place a current conservation plan or a current agricultural erosion and sediment control plan if engaged in plowing and tilling, and a current nutrient management plan or manure management plan, if required, or the development of such plans shall be included in an application for a tax credit. (3) An agricultural operation with an animal concentration area shall have implemented best management practices necessary to abate storm water runoff, loss of sediment, loss of nutrients and runoff of other pollutants from the animal concentration area, or the implementation of such best management practices shall be included in an application for a tax credit.(4) An agricultural operation with an uncompleted best management practice of either a conservation plan or an agricultural erosion and sediment control plan if engaged in plowing and tilling or a nutrient management plan or manure management plan, if required, shall first include the remaining best management practices included in such plans in an application for a tax credit.(5) A project shall meet the planning, design , construction and certification standards established by the commission. If standards do not exist for a best management practice approved by the commission, the commission may establish or approve planning, design, construction and certification standards for such a best management practice.(b) Amount of tax credit.--(1) A tax credit equal to 75% of the eligible costs under subsection (c) of a project authorized under section 1707-E shall be granted for any of the following: (i) Development of a voluntary or mandatory nutrient management plan or manure management plan. (ii) Development of an agricultural erosion and sediment control plan or a conservation plan.(iii) For an animal concentration area, design and implementation of best management practices necessary to abate storm water runoff, loss of sediment, loss of nutrients and runoff of other pollutants.(iv) Design and implementation of best management practices necessary to restrict livestock access to streams if there is established and maintained a riparian forest buffer with a minimum width of 50 feet.(v) Establishment of a riparian forest buffer with a minimum width of 50 feet.(2) A tax credit equal to 50% of the eligible costs under subsection (c) of a project authorized under section 1707-E shall be granted for any of the following:(i) For an agricultural operation, design and implementation of agricultural best management practices or the installation and use of equipment, provided that the best management practice or equipment is necessary to reduce existing sediment and nutrient pollution to surface waters. Such best management practices and equipment shall be identified by the commission and may include manure storage systems, alternative uses for manure, filter strips, grassed waterways, management intensive grazing systems and no-till planting equipment.(ii) Design and implementation of best management practices necessary to exclude livestock access to streams through fencing, stabilized crossings and improved watering systems, if there is established and maintained a vegetated riparian or riparian forest buffer with a minimum width of 35 feet.(iii) The remediation of legacy sediment, if the legacy sediment is exposed and discharges or threatens to discharge into surface waters as a result of acute stream bank erosion. The project shall meet standards established by the commission as being effective in mitigating or eliminating the harmful effects of legacy sediment. (3) [Repealed by 2019 Amendment.](4) Notwithstanding any other provision of this section, a tax credit equal to 90% of the eligible costs under subsection (c) of a project authorized under Section 1707-e may be granted for certain high-priority best management practices as determined by the commission and implemented within a watershed covered under an approved TMDL, including: (i) Riparian forest buffers and their maintenance.(ii) Livestock exclusion from streams and supporting practices.(v) Soil health best management practices as determined appropriate by the commission.(vi) Other best management practices as determined appropriate by the commission.(c) Costs of project.--(1) The following shall be considered eligible costs of a project to which a tax credit may be applied: (i) Project design, engineering and associated planning.(ii) Project management costs, including contracting, document preparation and applications.(iii) Project construction or installation.(iv) Equipment, materials and all other components of projects eligible under subsection (a).(v) Postconstruction inspections.(vi) Interest payments on loans for project implementation for up to one year prior to the award of the tax credit.(2) A tax credit shall not be applied to that portion of a project cost for which public funding was received.(3) Eligible costs of a project shall include any of the services listed in paragraph (1) that may be provided by a conservation district.(4) Notwithstanding any other provision of this article, tax credits for annual maintenance best management practices, such as cover crops, buffer maintenance and other annual practices approved by the commission, shall not exceed fixed rates or schedules established by the commission in annual program guidelines.Amended by P.L. TBD 2019 No. 13, § 13.2, eff. 7/1/2019.1971, March 4, P.L. 6, No. 2, art. XVII-E, § 1704-E, added 2007, July 25, P.L. 373, No. 55, §7, effective in 90 days [ 10/23/2007].