New York tax credit now available to cover farmers' overtime costs
The Long Island Farm Bureau is urging the 550 farm operations that it represents in Suffolk County to apply for the state tax credit. Credit: Randee Daddona
Farms may now apply for a state tax credit meant to reimburse them for the cost of paying employee overtime, Gov. Kathy Hochul announced.
The Farmer Employer Overtime Credit was proposed by the governor in 2022 and adopted by the State Legislature after an independent wage board set new overtime wage rates for farmworkers. The new rates, announced in 2022, went into effect on Jan. 1.
The wage board reduced the trigger point under which time-and-a-half must be paid to 56 hours on Jan. 1, from 60 hours per week. The threshold will then fall to 52 hours at the start of 2026, 48 hours in 2028, 44 hours in 2030 and finally 40 hours in 2032.
Farm employees became eligible for overtime pay in 2020 only after the legislature and then-Gov. Andrew M. Cuomo approved the Farm Laborer Fair Labor Practices Act of 2019. That law established the 60-hours-per-week threshold for time-and-a-half pay to begin.
"I encourage all eligible farm businesses to learn more about [the tax credit] and apply for reimbursement so that we can reduce their tax burden while helping them continue supporting their hardworking staff," Hochul said last month.
To claim the tax credit, farms must first obtain a NY.gov ID through My.NY.gov, then complete an eligibility assessment and register using an online portal at taxcredit.agriculture.ny.gov.
After finishing these steps, farmers may enter information about employee overtime at taxcredit.agriculture.ny.gov and request a certificate of advance payment of OT paid this year.
More information is available at agriculture.ny.gov/user-guide-farm-employer-overtime-credit-advance.
Farmers also can wait until they file their 2024 income tax return to receive the credit.
Richard Ball, the state’s agriculture commissioner, said the tax credit is designed to make sure "our farm businesses have the resources they need to support their workforce while meeting their food production goals."
Two years ago, the state also increased an existing workforce tax credit and expanded an investment tax credit for the purchase of farm equipment.
Still, farmers have said that overtime regulations should not apply to their employees because they work seasonally. The farmers also contend that they’ve been put at a competitive disadvantage with farms in Pennsylvania and other states without an overtime requirement and a lower minimum wage.
The Long Island Farm Bureau is urging the 550 farm operations that it represents in Suffolk County to apply for the state tax credit.
The credit "will be a huge benefit to help farmers reduce the burgeoning expenses they face in providing New York residents with farm fresh products," said bureau administrative director Robert Carpenter. "This credit will provide financial flexibility to eligible farmers, helping to ensure the economic viability of our farm operations in New York."
Farms may now apply for a state tax credit meant to reimburse them for the cost of paying employee overtime, Gov. Kathy Hochul announced.
The Farmer Employer Overtime Credit was proposed by the governor in 2022 and adopted by the State Legislature after an independent wage board set new overtime wage rates for farmworkers. The new rates, announced in 2022, went into effect on Jan. 1.
The wage board reduced the trigger point under which time-and-a-half must be paid to 56 hours on Jan. 1, from 60 hours per week. The threshold will then fall to 52 hours at the start of 2026, 48 hours in 2028, 44 hours in 2030 and finally 40 hours in 2032.
Farm employees became eligible for overtime pay in 2020 only after the legislature and then-Gov. Andrew M. Cuomo approved the Farm Laborer Fair Labor Practices Act of 2019. That law established the 60-hours-per-week threshold for time-and-a-half pay to begin.
"I encourage all eligible farm businesses to learn more about [the tax credit] and apply for reimbursement so that we can reduce their tax burden while helping them continue supporting their hardworking staff," Hochul said last month.
To claim the tax credit, farms must first obtain a NY.gov ID through My.NY.gov, then complete an eligibility assessment and register using an online portal at taxcredit.agriculture.ny.gov.
After finishing these steps, farmers may enter information about employee overtime at taxcredit.agriculture.ny.gov and request a certificate of advance payment of OT paid this year.
More information is available at agriculture.ny.gov/user-guide-farm-employer-overtime-credit-advance.
Farmers also can wait until they file their 2024 income tax return to receive the credit.
Richard Ball, the state’s agriculture commissioner, said the tax credit is designed to make sure "our farm businesses have the resources they need to support their workforce while meeting their food production goals."
Two years ago, the state also increased an existing workforce tax credit and expanded an investment tax credit for the purchase of farm equipment.
Still, farmers have said that overtime regulations should not apply to their employees because they work seasonally. The farmers also contend that they’ve been put at a competitive disadvantage with farms in Pennsylvania and other states without an overtime requirement and a lower minimum wage.
The Long Island Farm Bureau is urging the 550 farm operations that it represents in Suffolk County to apply for the state tax credit.
The credit "will be a huge benefit to help farmers reduce the burgeoning expenses they face in providing New York residents with farm fresh products," said bureau administrative director Robert Carpenter. "This credit will provide financial flexibility to eligible farmers, helping to ensure the economic viability of our farm operations in New York."
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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