Governor Hochul announces that New York farm employers can now apply for the refundable overtime tax credit to ease labor costs

Albany, New York – New York State is continuing its push to support agriculture and ease the financial burden on farm businesses with the return of the Farm Employer Overtime Credit Advance program. On August 2, Governor Kathy Hochul officially announced the opening of the application window for the refundable tax credit, marking a renewed effort to strengthen the state’s farming industry while helping agricultural employers manage rising labor costs.

Now in its second year, the program is a direct result of the Governor’s promise to provide meaningful financial relief to the backbone of New York’s food system — its farmers and their workers. Farm employers across the state who have paid eligible overtime wages since January 1, 2025, can now apply for an advance certificate, allowing them to receive partial reimbursement through the Department of Taxation and Finance (DTF).

“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 program is open to eligible farm employers who pay overtime wages — either directly to employees or indirectly through a Professional Employer Organization (PEO). This year’s expansion allows farms that used PEOs in 2024 to apply retroactively for overtime paid between January 1 and December 31, 2024.

Applications must be submitted to the Department of Agriculture and Markets (AGM) no later than September 30, 2025. Once reviewed and approved, applicants will receive a certificate of advance payment, which can then be used to request their tax credit from DTF. That final request must be submitted by November 1 through DTF’s online services portal.

Read also: Former Monroe High School cheerleaders reunite after decades to honor their inspirational coach and longtime English teacher Mrs. Musset Castle

Farmers are encouraged to check their eligibility on the AGM’s website and gather any needed documentation ahead of time. Businesses applying must be officially recognized as eligible farm employers and show records of paying qualified overtime wages.

The Department of Agriculture and Markets has been proactive in helping farmers navigate the application process. In July, the agency hosted a detailed webinar explaining how to apply, what documentation is needed, and what deadlines to watch. A recording of the session remains available on AGM’s YouTube channel.

New York State Agriculture and Markets Commissioner Richard A. Ball emphasized the continued importance of the initiative.

“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,” Commissioner Ball said. “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.”

The refundable credit comes as the agriculture industry in New York faces continued challenges, including increased operational costs, labor shortages, and the pressures of adapting to changing market demands. The goal of this initiative is to provide timely financial relief for those already feeling the impact of phased-in overtime rules.

State lawmakers have also voiced strong support for the program, praising its expansion and urging the farming community to take full advantage of the opportunity.

“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,” said State Senator Michelle Hinchey. “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.”

Read also: State Police continue investigation into death of 9-year-old child found unresponsive at Watervliet residence

Assemblymember Donna Lupardo echoed those sentiments, stressing the importance of outreach and participation. “I am urging members of our farm community to apply for the refundable Overtime Tax Credit, now in its second year,” she said. “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.”

This program was first launched following Governor Hochul’s 2022 State of the State address, where she pledged to expand economic support for New York’s farming communities. The advance credit program was one of several tax incentives aimed at making it more sustainable for farms to retain labor and maintain operations despite changing wage laws.

In her 2025 State of the State address, the Governor doubled down on her commitment to agriculture by expanding the program further and introducing additional measures to support the industry. These included increased access to mental health resources for farm workers, climate-resilient farming pilot projects, and support for new farmers and agribusiness startups.

Farmers and farm business owners interested in the Farm Employer Overtime Credit are encouraged to reach out to [email protected] for questions or guidance. The Department of Agriculture and Markets has also posted detailed guidance, eligibility checklists, and application forms at agriculture.ny.gov/farming/farm-employer-overtime-credit-advance.

As the application period moves forward, state officials continue to promote the program as a win-win — giving farmers the tools to succeed financially while ensuring that farm workers are fairly compensated and supported.

With harvest season approaching and labor in high demand, the Farm Employer Overtime Credit Advance program is expected to provide welcome relief to hundreds of farm businesses across the state. By easing the cost of overtime wages, the state hopes to ensure that farms can keep running, workers can keep earning, and New Yorkers can continue to enjoy fresh, locally grown food — straight from the fields of upstate and beyond.