The New York State Department of Agriculture and Markets (Department) today announced that the State’s Farm Employer Overtime Credit advance portal is now open for farmers to register and begin preparing the documents they will need to apply for reimbursement. Later this year, eligible farm employers may apply to the Department of Agriculture and Markets for a certificate of advance payment of eligible overtime paid to their employees between January 1 and July 31, 2026. As tax season opens, this opportunity is part of Governor Kathy Hochul’s continued plan to support New York’s farmers through a series of enhanced tax credits and other initiatives.
State Agriculture Commissioner Richard A. Ball said, “Farm labor is one of the most critical issues for agriculture and we are working hard to ensure that farmers have the resources they need to support their workforce while meeting their food production goals. This program, coupled with the State’s refundable tax credits, are providing real relief to the industry by offsetting increased labor costs and additional pressures stemming from supply chain disruptions, ongoing tariff changes, and cuts to important programs. I encourage our farmers to consider the overtime credit and its potential impact on their operations.”
The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who pay overtime wages after January 1, 2026, based on the gradual phase-in of the overtime threshold in New York State. Farmers can apply for this refundable credit if they or their business:
- are an eligible farmer; and
- employ eligible farm employees that were paid eligible overtime; or
- either directly or indirectly, through a Professional Employer Organization (PEO), paid eligible overtime wages to eligible farm employees.
The overtime threshold, which is used to calculate a farm’s credit amount, is reduced by four hours every two years until the threshold reaches 40 hours in 2032. In 2026, the threshold will be 52 hours.
Source : ny.gov