The New York State Department of Agriculture and Markets announced that the Farm Employer Overtime Credit advance portal is now open, giving farmers the opportunity to register and begin preparing documents needed to apply for reimbursement later this year.
Eligible farm employers may apply for an advance payment certificate for overtime wages paid to farm employees between January 1 and July 31, 2026. The program is part of Governor Kathy Hochul’s broader effort to support New York farmers as statewide overtime requirements are gradually phased in.
The Farm Employer Overtime Credit is a refundable tax credit available to eligible farmers who pay overtime wages to qualifying farm employees, either directly or through a Professional Employer Organization, or PEO. The overtime threshold used to calculate the credit is being reduced by four hours every two years until it reaches 40 hours in 2032. For 2026, the threshold is set at 52 hours.
State officials also announced a new one-time “catch-up” credit for farms that used a PEO for payroll services and paid eligible overtime between January 1, 2024, and December 31, 2025. To qualify, farms must obtain a year-end certificate from the Department and claim the credit on a tax return that includes December 31, 2025. Applications for the catch-up credit will be accepted through February 1, 2026.
The Department is encouraging farm employers to begin preparing now by registering for a NY.gov ID, completing an eligibility assessment, consulting with tax and payroll advisors, and registering their farm through the online portal at taxcredit.agriculture.ny.gov. Farmers may also designate a representative, such as a tax preparer, to apply on their behalf.
From August 1 through September 30, 2026, employers may upload payroll documentation and apply for a certificate of advance payment for eligible overtime paid earlier in the year. Approved applicants will then be able to request payment from the New York State Department of Tax and Finance by November 1.
Beginning with the 2026 tax year, all eligible farm employers will be required to apply for a year-end certificate in order to claim the credit on their tax returns. That application window will run from January 1 through February 1, 2027.
Additional information, including key dates and guidance materials, is available on the Department of Agriculture and Markets and Department of Tax and Finance websites. The Farm Employer Overtime Credit was created as part of Governor Hochul’s 2022 State of the State proposal to help offset rising farm labor costs.
