Eligible Farmers May Now Apply for Reimbursement for Overtime Paid Since January 1, 2024

Farm Employer Overtime Credit is Part of Governor’s Plan to Support Farm Workers and Food Production

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. 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 January 1 to the date of their application.

Farmers may also wait until August to apply for reimbursement for the entire January 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.

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 November 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; 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:

- 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 [email protected] or (518) 457-7076.

New York State Agriculture Commissioner Richard A. Ball said, “This new Farm Employer Overtime Credit program will help to ensure that our farm businesses have the resources they need to support their workforce while meeting their food production goals. I encourage eligible farmers to learn more about the program and apply for reimbursement for the first half of 2024 starting today.”

New York State Department of Finance and Taxation Acting Commissioner Amanda Hiller said, “At Governor Hochul’s direction, multiple state agencies are working hard to address the challenges faced by New York’s farmers. This new overtime tax credit can provide substantial financial relief to farmers dealing with high labor costs. I urge farmers to check out eligibility requirements and to consider applying.”

State Senator Michelle Hinchey said, “For decades, New York farmers have battled national headwinds, often putting their businesses at a competitive disadvantage through no fault of their own. Keeping our farms in business is paramount to ensuring that local food access does not collapse in the State of New York, which is why we fought to create the Farm Employer Overtime Tax Credit to cover the cost of overtime for farm employers. We are committed to getting this money out the door and into the hands of New York farmers, and we urge all eligible farms to apply for the overtime subsidies we secured for them.”

Assemblymember Donna Lupardo said, “I am strongly urging members of our farm community to apply for the new refundable overtime tax credit. We worked hard to find a way to lessen the impact of increased overtime wages on New York’s farm operators. I hope these employers will take full advantage of the resources and assistance being made available to help them through the process.”

The Farm Employer Overtime Credit was created by Governor Hochul as part of her 2022 State of the State pledge to help farmers meet the challenge of farm labor costs, which are among the fastest-growing costs of agricultural production in New York. The plan created a permanent refundable tax credit on overtime hours for any size farm in New York State to offset increasing costs to farmers. Governor Hochul additionally increased an existing workforce tax credit and expanded an investment tax credit for equipment to complement the workforce and address shortages.

This year, Governor Hochul’s 2024 State of the State included several major proposals and investments to strengthen the agricultural industry and promote a more resilient future for our agriculture, food, and forestry sectors. The initiatives will provide a boost to New York’s dairy and agricultural industries, develop workforce development programs, and increase youth leadership and education opportunities.