Eligible farm employers in New York can now apply for the Farm Employer Overtime Credit Advance program, which offers reimbursement for overtime paid to employees since January 1, 2025. This marks the second year of the initiative, which is part of Governor Kathy Hochul’s broader plan to support farmers through new and expanded tax credits.
Governor Hochul stated, “Our farmers and farm workers are the backbone of New York, and I’m doing everything in my power to ensure that they can thrive in their essential work of bringing fresh, local products to communities across New York. The Farm Employer Overtime Credit Advance is a big part of that, reducing the tax burden for our farm businesses while helping them to continue supporting their hardworking staff, caring for animals and harvesting perishable products. I encourage all eligible farmers to learn more about this program and submit their applications now for a certificate of advance payment.”
The refundable tax credit is available for farm employers who pay overtime wages as New York phases in a lower overtime threshold. Applications must be submitted to the Department of Agriculture and Markets (AGM) by September 30, 2025. Approved applicants will receive a certificate allowing them to request reimbursement from the Department of Taxation and Finance no later than November 1 via DTF’s online services.
Farms using Professional Employer Organizations (PEOs) in 2024 may also apply for certification covering overtime paid between January 1 and December 31, 2024. More information about eligibility criteria and application guidance is available on AGM’s website at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.
New York State Agriculture and Markets Commissioner Richard A. Ball commented, “Farm labor is a critical issue, and we are working hard to ensure that farmers have the resources they need to support their workforce while meeting their food production goals. Last year, the Overtime Tax Credit initiative had a great start, and we are looking forward to continuing to grow the program and make sure that our farmers and farm workers have the support they need.”
State Senator Michelle Hinchey added, “New York farms are the reason we have a local food supply and a foundational driver of our statewide economy, so keeping these businesses strong and supported with tools like the Farm Employer Overtime Tax Credit is a major priority. The credit delivers direct financial relief to help farmers cover labor costs, and I’m proud we secured an expansion this year to include farms using PEOs, making many dairy farms and other producers newly eligible for the credit. Applications are open now, and I encourage every eligible farm to apply.”
Assemblymember Donna Lupardo said, “I am urging members of our farm community to apply for the refundable Overtime Tax Credit, now in its second year. We worked hard to find a way to lessen the impact of increased overtime wages on New York’s farm operators, and to expand eligibility to PEOs. I hope all eligible farmers will take advantage of this program; information and assistance is readily available through the Department of Ag and Markets website.”
The Farm Employer Overtime Credit was launched after Governor Hochul’s pledge in her 2022 State of the State address as part of ongoing efforts aimed at providing targeted tax relief within New York’s agricultural sector.
Farmers seeking further details or assistance can visit agriculture.ny.gov/farming/farm-employer-overtime-credit-advance or contact AGM directly.
