Overtime Tax Credit Advance Portal is Now Open

The New York State Department of Agriculture and Markets (Department) today announced that the State’s Farm Employer Overtime Credit advance portal is now open for farmers to register and begin preparing the documents they will need to apply for reimbursement. Later this year, eligible farm employers may apply to the Department of Agriculture and Markets for a certificate of advance payment of eligible overtime paid to their employees between January 1 and July 31, 2026. As tax season opens, this opportunity is part of Governor Kathy Hochul’s continued plan to support New York’s farmers through a series of enhanced tax credits and other initiatives.

State Agriculture Commissioner Richard A. Ball said, “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.”

The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who pay overtime wages after January 1, 2026, based on the gradual phase-in of the overtime threshold in New York State. Farmers can apply for this refundable credit if they or their business:

• are an eligible farmer; and
• employ eligible farm employees that were paid eligible overtime; or
• either directly or indirectly, through a Professional Employer Organization (PEO), paid eligible overtime wages to eligible farm employees.

The overtime threshold, which is used to calculate a farm’s credit amount, is reduced by four hours every two years until the threshold reaches 40 hours in 2032. In 2026, the threshold will be 52 hours.

Catch Up Credit

New this year, farms that used a Professional Employer Organization (PEO) for payroll services that included eligible overtime between January 1, 2024 through December 31, 2025 are eligible to receive a one-time “catch up” credit. To receive this credit, eligible farms will need to obtain a year-end certificate from the Department and claim the credit on the farm’s tax return that includes December 31, 2025. There will not be another opportunity to claim this credit for eligible overtime paid in calendar year 2024 or 2025. The application period to apply for a certificate is currently open through February 1, 2026

All eligible farm employers are encouraged to prepare to apply for their 2026 credit  by taking the following steps:

• Ensuring that they are registered for a NY.gov ID through My.NY.gov.
• Taking the farm employer eligibility assessment to establish if they (the farm employer) expect to meet the eligible farmer income requirements for their tax filing type at the end of the tax year.
• Discussing the program with their tax and payroll advisors to ensure they are keeping necessary records.
• Registering their farm in the online portal now if they plan to apply for the advance payment or year-end credit in 2026. The application portal can be accessed by visiting taxcredit.agriculture.ny.gov.
• Optionally, choosing to delegate authority to a representative (e.g., a tax preparer), who may complete and submit the application on the farm employer’s behalf later in the year.

A user guide to assist farmers with these preparatory steps is available at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.

Starting August 1 through September 30, 2026, farm employers may upload supporting payroll documentation to the portal and submit to the Department for a certificate of advance payment of eligible overtime paid between January 1 and July 31. After eligibility review, the Department will issue a certificate of advance 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 advance payment from the New York State Department of Tax and Finance (DTF). This request must be made no later than November 1, using the online services account at DTF’s website.

Also new for the 2026 tax year, all eligible farm employers will need to apply for a year-end certificate from the Department in order to claim the credit on their 2026 tax return. The application period to apply for a 2026 year-end certificate will be January 1 through February 1, 2027.

Additional information and resources, including important dates and a chart where upcoming educational events will be available when scheduled, can be found on the Department of Agriculture and Markets’ website at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance and the DTF website at tax.ny.gov/pit/credits/farm-employer-overtime-credit.htm. Questions may be directed to [email protected] or (518) 457-7076.

The Farm Employer Overtime Credit was created by Governor Hochul as part of her 2022 State of the State pledge to help farmers meet the challenge of farm labor costs, which are among the fastest-growing costs of agricultural production in New York. The plan created a permanent refundable tax credit on overtime hours for any size farm in New York State, to offset increasing costs to farmers. Governor Hochul additionally increased an existing workforce tax credit and expanded an investment tax credit for equipment to complement the workforce and address shortages.

This year, Governor Hochul's 2026 State of the State includes several major proposals and investments to provide a boost to New York’s agricultural industry, including the Agricultural Resiliency Against Tariffs Program, which will provide $30 million in direct payments to New York specialty crop growers, livestock producers, and dairy farmers to offset rising costs caused by tariffs. Additional proposed initiatives include another round of the Dairy Modernization Grant Program and extending the refundable investment tax credit to give farms the time and certainty needed to modernize operations and complete major projects. These initiatives are designed to strengthen the agricultural industry and promote a more resilient future for our food and agricultural sectors.