Overtime Tax Credit Program Returns for New York Farms

By Blake Jackson

The New York State Department of Agriculture and Markets (AGM) has opened applications for the 2026 Farm Employer Overtime Credit Advance program, allowing eligible farm employers to receive reimbursement for qualifying overtime wages paid to employees since January 1, 2026.

Now entering its third year, the program is part of Governor Kathy Hochul’s broader initiative to strengthen New York agriculture through tax relief and financial support for farm businesses.

“The agricultural industry is unique in that our farmers and farm workers don’t necessarily work traditional hours. That’s why it’s important that we support our agricultural community and ensure that they have the resources they need so that they can continue providing food for our families," State Agriculture Commissioner Richard A. Ball said.

"The Overtime Tax Credit helps provide farmers across our state with timely relief to maintain their workforce and keep our food supply moving. I encourage all eligible farmers to apply and take advantage of this program.”

The refundable tax credit is available to qualifying farm employers that pay eligible overtime wages under New York’s phased reduction of the farm overtime threshold. For 2026, employers may apply for reimbursement covering overtime paid between January 1 and July 31.

Applications must be submitted to AGM by September 30. Once approved, employers will receive a certificate of advance payment, which can be used to request reimbursement from the Department of Taxation and Finance no later than November 1.

To qualify, applicants must meet the eligible farmer requirements and have paid qualifying overtime wages directly or through a Professional Employer Organization (PEO).

The overtime threshold for 2026 is 52 hours per week, with the limit decreasing every two years until it reaches 40 hours in 2032.

Beginning this year, employers seeking to claim the credit on their 2026 tax returns must also apply for a year-end certificate between January 1 and February 1, 2027.

Farmers are encouraged to register through the state’s online portal, complete the eligibility assessment, coordinate with tax and payroll advisors, maintain accurate records, and, if desired, authorize a representative to submit applications on their behalf.

For complete information, click here.

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