Reminder From New York State Agriculture Commissioner: Deadline Approaching for Refundable Farm Employer Overtime Tax Credit Advance Application

New York State Agriculture Commissioner Richard A. Ball today reminded eligible farm employers that they may still apply to the Department 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 between January 1, 2024 to July 31, 2024. The Farm Employer Overtime Credit was announced by Governor Hochul in her 2022 State of the State pledge to help farmers meet the challenge of farm labor costs and ensure that farm employers can continue to support their workers while reducing their tax burden. Applications to receive a certificate for the advance reimbursement are due September 30, 2024. Additional information is available at https://agriculture.ny.gov/farming/farm-employer-overtime-credit-advance. 

New York State Agriculture Commissioner Richard A. Ball said, “The State launched the Farm Employer Overtime Credit program to support New York’s agricultural community, helping ensure that our farm businesses have the resources they need to support their workforce while meeting their food production goals. I urge all eligible farm employers to apply for a credit certificate from the Department by September 30 to take advantage of this mid-year opportunity to cover the cost of overtime and continue their great work supporting our farmers and our families.

The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who paid overtime wages between January 1, 2024 to July 31, 2024, based on the gradual phase-in of the overtime threshold in New York State. Farm employers who have registered in the online portal at taxcredit.agriculture.ny.gov, entered eligible employee overtime information, and signed an attestation that they meet eligibility requirements, may submit their application to the Department for a certificate of advance payment of eligible overtime paid between January 1 to July 31, 2024.

Applications for a certificate of advance payment must be submitted to the Department  by September 30, 2024. After eligibility review, the Department 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.

Receiving the advance credit payment is not mandatory. Farm employer’s owner(s), partners or shareholders can choose to claim any eligible overtime paid for the entire year (including the January 1 – July 31 period) when they file their final tax return with DTF. 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 for an advance certificate is available at agriculture.ny.gov/user-guide-farm-employer-overtime-credit-advance.  

Earlier this year, the State encouraged farmers to prepare to apply for an advance payment 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 Department’s website here and the DTF website here. Questions may be directed to farmOTadvance@agriculture.ny.gov or (518) 457-7076.

Senator Michelle Hinchey said, “Despite national challenges that all too often put New York farms at a competitive disadvantage, we won’t let local food access collapse. That's why we fought to create the Farm Employer Overtime Tax Credit, which covers farm employers' overtime costs. We’re committed to getting this critical funding to our farmers, and we urge them to apply by September 30^th so they don't miss out on these overtime subsidies."

Assemblymember Donna Lupardo said, "With the deadline less than a week away, I am strongly urging NY farmers to apply for the Farm Employer Overtime credit, if they have not done so already. This tax credit is intended to lessen the impact of increased overtime wages on farm operators. Help remains available for those who need assistance working 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 creditfor equipment to complement the workforce and address shortages.