The New York State Department of Agriculture and Markets has opened the advance portal for the Farm Employer Overtime Credit, allowing farmers to register and prepare necessary documents for reimbursement. This move is part of Governor Kathy Hochul’s ongoing plan to support the state’s farmers with enhanced tax credits and other initiatives.
Farmers who pay overtime wages after January 1, 2026, can apply for a refundable tax credit if they meet eligibility requirements. The overtime threshold in New York is being gradually reduced by four hours every two years until it reaches 40 hours in 2032; in 2026, the threshold will be set at 52 hours.
State Agriculture Commissioner Richard A. Ball stated, “Farm labor is one of the most critical issues for agriculture and we are working hard to ensure that farmers have the resources they need to support their workforce while meeting their food production goals. This program, coupled with the State’s refundable tax credits, are providing real relief to the industry by offsetting increased labor costs and additional pressures stemming from supply chain disruptions, ongoing tariff changes, and cuts to important programs. I encourage our farmers to consider the overtime credit and its potential impact on their operations.”
A new feature this year allows farms that used a Professional Employer Organization (PEO) for payroll services covering eligible overtime between January 1, 2024, and December 31, 2025, to claim a one-time “catch up” credit. Farms must obtain a year-end certificate from the Department and claim this credit on their tax return including December 31, 2025. The application period for this certificate is open through February 1, 2026.
Eligible farm employers are advised to take several preparatory steps: register for a NY.gov ID via My.NY.gov; complete an eligibility assessment; consult with tax or payroll advisors; register their farm in the online portal if they intend to apply; and optionally delegate authority to a representative such as a tax preparer.
From August 1 through September 30, 2026, farm employers may upload supporting payroll documentation through the portal and submit it for certification of advance payment on eligible overtime paid between January 1 and July 31. Once approved by the Department following eligibility review, farmers can request their share of advance payment from the New York State Department of Tax and Finance no later than November 1.
For the first time in the upcoming tax year, all eligible farm employers must also apply for a year-end certificate from the Department between January 1 and February 1, 2027 in order to claim credits on their returns.
Further details about deadlines and educational events can be found on both the Department’s website as well as the DTF website. The Department also provides user guides online.
The Farm Employer Overtime Credit was introduced by Governor Hochul as part of her efforts beginning with her pledge in her State of the State address in 2022. The initiative established a permanent refundable tax credit on overtime hours regardless of farm size across New York State. Other measures include increases in workforce-related credits and expanded investment credits aimed at addressing equipment needs.
Governor Hochul’s proposals for this year include new investments such as $30 million under an Agricultural Resiliency Against Tariffs Program directed toward specialty crop growers, livestock producers, and dairy farmers facing higher costs due to tariffs. Additional plans involve another round of Dairy Modernization Grants along with extensions on investment tax credits meant to help farms modernize operations.
The New York Department of Agriculture and Markets supports local agriculture through grants and programs designed both to promote state agricultural products and protect food resources—a mission rooted in its long history dating back to its founding in 1841.
