State opens applications for overtime tax credit application for farm employers

Press Release, Gov. Kathy Hochul’s Office

Governor Kathy Hochul today announced that eligible farm employers may now apply to the Department of Agriculture and Markets for a certificate of advance payment so they can receive reimbursement from the Department of Taxation and Finance for eligible overtime paid to their employees since January 1, 2024.

(Editor’s Note: The threshold for overtime decreased for agricultural workers starting Jan. 1. The limit was 60 hours a week at straight pay before workers could earn overtime. That dropped to 56 hours this year. It is part of a phase-in reduction where the overtime threshold will be lowered by four hours every other year to 40 hours a week in 2032.)

This Farm Employer Overtime Credit is a part of Governor Hochul’s plan to support New York’s farmers through a series of new and increased tax credits and other initiatives and helps to ensure that farm employers can continue to support their workers while reducing their tax burden.

“Supporting New York’s farmers and farmworkers, who are essential to keeping New York State running, is a key priority for my administration – and our new Farm Employer Overtime Credit is one of many great initiatives that aim to help alleviate the challenge of rising costs,” Governor Hochul said. “I encourage all eligible farm businesses to learn more about this program and apply for reimbursement so that we can reduce their tax burden while helping them to continue supporting their hardworking staff.”

The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who paid overtime wages after January 1, 2024, based on the gradual phase-in of the overtime threshold in New York State.

As of now, farm employers who have registered in the new online portal at taxcredit.agriculture.ny.gov may enter eligible employee overtime information and submit their application to the Department of Agriculture and Markets (AGM) for a certificate of advance payment of eligible overtime paid between Jan. 1 to the date of their application.

Farmers may also wait until August to apply for reimbursement for the entire Jan. 1 through July 31 period, or they may choose to wait until they file their tax return to receive the credit. Between the advance payment and months claimed on their return, eligible farm employers will receive a full 12 months of the Farm Employer Overtime Credit.

A user guide to assist farmers in the application process is available at agriculture.ny.gov/user-guide-farm-employer-overtime-credit-advance.

Applications for a certificate of advance payment must be submitted to AGM by September 30. After eligibility review, AGM will issue a certificate to each approved farm employer. With a certificate of advance payment, the approved farm employer’s owner(s), partners or shareholders can then request their share of the advance payment from Department of Taxation and Finance (DTF).

Each of the farm’s owners, partners or shareholders who wants to receive their portion of the credit advance must apply individually. This request must be made no later than Nov. 1, using the online services account at DTF’s website.

Farmers may apply for this refundable credit if they (or their business): are an eligible farmer (click here); and employ eligible farm employees that were paid eligible overtime.

Earlier this year, the State encouraged farmers to prepare to apply by taking the following steps (click here):

• Ensuring that they are registered for a NY.gov ID through My.NY.gov.
• Taking the farm employer eligibility assessment to establish if they (the farm employer) expect to meet the eligible farmer income requirements for their tax filing type at the end of the tax year.
• Discussing the program with their tax and payroll advisors to ensure they kept necessary records during the January 1 – July 31 period this year.
• Registering their farm in the online portal at taxcredit.agriculture.ny.gov.
• Optionally, choosing to delegate authority to a representative (e.g., a tax preparer), who may complete and submit the application on the farm employer’s behalf later in the year.

Additional information and resources are available on the AGM’s website at agriculture.ny.gov/OTadvance and the DTF website at tax.ny.gov/pit/credits/farm-employer-overtime-credit.htm. Questions may be directed to farmOTadvance@agriculture.ny.gov or (518) 457-7076.