Eligible farm employers in New York can now apply for the Farm Employer Overtime Credit Advance program to receive reimbursement for overtime wages paid since January 1, 2025. The initiative, in its second year, is part of Governor Kathy Hochul’s broader plan to support farmers with new and expanded tax credits.
Governor Hochul said, “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 credit is available to farm employers who pay overtime wages under the state’s phased-in overtime threshold. Applications may be submitted starting today through the Department of Agriculture and Markets (AGM) for eligible overtime paid between January 1 and July 31, 2025. Reimbursement will come from the Department of Taxation and Finance (DTF).
Additionally, farms that used a Professional Employer Organization (PEO) in 2024 can apply for certification covering eligible overtime paid throughout last year. All applications must be submitted by September 30. After eligibility review by AGM, approved applicants will receive a certificate of payment which allows them or business owners—such as partners or shareholders—to request their share from DTF no later than November 1 via online services.
Farmers qualify if they are an eligible farmer directly employing workers or paying overtime through PEO services. Information about eligibility requirements and application guidance is available on AGM’s website at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.
To assist applicants, AGM hosted a webinar in July; a recording is accessible on AGM’s YouTube page.
New York State Agriculture and Markets Commissioner Richard A. Ball stated, “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 commented: “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 added: “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 during her 2022 State of the State address as part of efforts aimed at providing targeted tax relief within agriculture. In her most recent address in 2025 she announced additional measures designed not only for immediate financial relief but also long-term industry resilience.
