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Eligible Farmers May Now Apply for Reimbursement for Overtime Paid Since January 1, 2025
Important Adjustments to the Program Allow for Greater Farmer Participation
Farm Employer Overtime Credit is Part of Governor’s Plan to Enhance Affordability, Support Farm Workers, and Boost Food Production
Governor Kathy Hochul today announced that eligible farm employers may now apply for the Farm Employer Overtime Credit Advance program and receive reimbursement for eligible overtime paid to employees since January 1, 2025. Now in its second year, the Farm Employer Overtime Credit Advance program is a part of Governor Hochul’s plan to support New York’s farmers through a series of new and increased tax credits and other initiatives and helps to ensure that farm employers can continue to support their workers while reducing their tax burden.
“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.”
The Farm Employer Overtime Credit is a refundable tax credit available for farm employers who pay overtime wages, based on the phase-in of an overtime threshold in New York State. Beginning today, farm employers may submit an application to the Department of Agriculture and Markets (AGM) for a certificate of advance payment of eligible overtime paid between January 1 and July 31, 2025 so they can receive reimbursement from the Department of Taxation and Finance (DTF).
Farms that used a Professional Employer Organization (PEO) in 2024 may also apply for certification for eligible overtime paid between January 1, 2024 and December 31, 2024. Applications must be submitted to AGM by September 30. After eligibility review, AGM will issue a certificate of 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 payment from the Department of Taxation and Finance (DTF). This request must be made no later than November 1, using the online services account at DTF’s website.
Farmers can apply for this refundable credit if they or their business:
The deadline to apply for an advance credit certificate from AGM is September 30, 2025. Farmers are encouraged to reach out to FarmOTAdvance@agriculture.ny.gov with any questions. More information about the program, including guidance documents, is available on AGM’s website at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.
AGM hosted a special webinar in July to help eligible farmers prepare for the launch of the program. A recording of the webinar is available on AGM’s YouTube page.
New York State Agriculture and Markets Commissioner Richard A. Ball said, “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 said, “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 said, “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.”
Launched following Governor Hochul’s 2022 State of the State pledge, the Farm Employer Overtime Credit continues to play a key role in providing tax relief to New York’s agriculture industry. By providing targeted tax relief, the program helps farm employers manage labor costs while ensuring workers are supported. In her 2025 State of the State address, the Governor expanded this commitment with a range of cross-cutting initiatives designed to bolster farm operations, strengthen the industry, and promote a more resilient future for New Yorkers.