New York Launches 2025 Farm Overtime Tax Credit Program

By Blake Jackson

Governor Kathy Hochul has announced the launch of the 2025 Farm Employer Overtime Credit Advance program, allowing eligible New York farm employers to apply for reimbursement of overtime wages paid to their employees since January 1, 2025.

Now in its second year, this initiative is part of Governor Hochul’s broader plan to support farmers across the state through expanded tax credits and financial relief efforts.

“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,” Governor Hochul said.

“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.”

This refundable tax credit is available to farm employers who pay overtime wages, which are subject to New York’s phased-in overtime threshold.

Beginning immediately, farm employers can apply to the Department of Agriculture and Markets (AGM) for a certificate covering overtime paid from January 1 through July 31, 2025. Once approved, they may then request reimbursement through the Department of Taxation and Finance (DTF).

Farms that partnered with a Professional Employer Organization (PEO) in 2024 may also apply for overtime wages paid between January 1 and December 31, 2024.

All applications must be submitted to AGM by September 30, 2025. Approved applicants will receive a certificate of payment to present to DTF for reimbursement, with requests due by November 1 via DTF’s online services.

Farmers qualify if they are eligible employers who either directly pay overtime wages or do so indirectly through a PEO.

“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," Commissioner Richard A. Ball said.

"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.”

For more information visit, https://agriculture.ny.gov/farming/farm-employer-overtime-credit-advance

Photo Credit: istock-chas53