Hochul launches first phase of refundable overtime tax credit available for farm employers

Encourages eligible farmers to register now and begin recordkeeping for Jan. 1-July 31 period to receive reimbursement later this year

Gov. Kathy Hochul announced the launch of the state’s new farm employer overtime credit advance portal, which 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 Jan. 1 and July 31, 2024.

“Our farmers and farm workers are essential, and I want to do everything in my power to ensure that they can thrive in their work to bring fresh, local products to the tables of New Yorkers,” Hochul said. “The farm employer overtime credit is a big part of that, reducing the tax burden for our farm businesses while allowing them to continue supporting their hardworking staff. I encourage all eligible farmers to learn more about this program, get registered, and talk to their tax preparer so they can be prepared to apply later this year.”

The farm employer overtime credit is a refundable tax credit available for eligible farm employers who pay overtime wages after Jan. 1, 2024, 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 who were paid eligible overtime.

Farm employers are encouraged to prepare to apply this year 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 advisers to ensure they are keeping necessary records during the Jan. 1-July 31 period this year.

√ Registering their farm in the online portal now if they plan to apply for the advance payment in 2024. 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/user-guide-farm-employer-overtime-credit-advance.

After July 31, farm employers may upload supporting payroll documentation to the portal and submit to the Department of Agriculture and Markets AGM for a certificate of advance payment of eligible overtime paid between Jan. 1 and July 31. Applications must be submitted to AGM by Sept. 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 advance payment from the New York State Department of Tax and Finance (DTF). This request must be made no later than Nov. 1, using the online services account at DTF’s website.

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.

State Agriculture Commissioner Richard A. Ball said, “Farm labor is a critical issue, and we at the state are working hard to ensure that farmers have the resources they need to support their workforce and while meeting their food production goals. I encourage farmers to take a look at the resources we have available, learn more about the farm employer overtime credit program, and talk to their tax and payroll advisers to ensure they can take part in this great opportunity.”

The press release noted, “The farm employer overtime credit was created by … 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. … 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 … Hochul’s 2024 State of the State includes several major proposals and investments to provide a boost to New York’s dairy and agricultural industries, develop workforce development programs, and increase youth leadership and education opportunities. These initiatives are designed to strengthen the agricultural industry and promote a more resilient future for our agriculture, food and forestry sectors.”