State Agriculture Department Announces Registration Now Open for...

The New York State Department of Agriculture and Markets (AGM) today announced that eligible farm employers can now apply for the Farm Employer Overtime Credit Advance program and receive reimbursement for eligible overtime paid to employees since January 1, 2026. Now in its third year, the Farm Employer Overtime Credit Advance program 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.

State Agriculture Commissioner Richard A. Ball said, “The agricultural industry is unique in that our farmers and farm workers don’t necessarily work traditional hours. That’s why it’s important that we support our agricultural community and ensure that they have the resources they need so that they can continue providing food for our families. The Overtime Tax Credit helps provide farmers across our state with timely relief to maintain their workforce and keep our food supply moving. I encourage all eligible farmers to apply and take advantage of this program.”

The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who pay overtime wages, based on the gradual phase-in of the overtime threshold in New York State. Farm employers may submit an application to AGM for a certificate of advance payment of eligible overtime paid between January 1 and July 31, 2026, so they can receive reimbursement from the Department of Taxation and Finance (DTF).

Applications must be submitted to AGM by September 30. After eligibility review, AGM will issue a certificate of advance payment to each approved farm employer. With a certificate of advance payment, the approved farmer or business owners (for example, partners or shareholders) can then request their share of the payment from the Department of Taxation and Finance (DTF). This request must be made no later than November 1, using the online services account at DTF’s website.

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 is 52 hours. 

Year-end Certificate 

New this year, to claim the credit on their 2026 tax return, all eligible farm employers will need to apply for a year-end certificate from AGM. The application period to apply for a 2026 year-end certificate will be January 1 through February 1, 2027.

All eligible farm employers are encouraged to prepare to apply for their 2026 credit 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 are keeping necessary records. 
• Registering their farm in the online portal now if they plan to apply for the advance payment and/or year-end credit in 2026. The application portal can be accessed by visiting 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.

A user guide to assist farmers with these preparatory steps is available at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.

Additional information and resources, including important dates and a chart where upcoming educational events will be available when scheduled, can be found on the Department of Agriculture and Markets’ website at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance 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. 

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.