Farm employer overtime credit
Who is eligible?
You are entitled to this refundable credit if you or your business:
- is an eligible farmer; and
- employs eligible farm employees that you paid eligible overtime.
How much is the credit?
The credit amount is based on the eligible overtime you or your business pay. The credit is 118% (1.18) of the eligible overtime hours you or your business paid multiplied by the difference between the employees' overtime rate of pay and their regular rate of pay.
Calculation: 1.18 x eligible overtime hours x (overtime rate - regular rate) = credit amount
Eligible overtime is the total number of hours your eligible farm employee works in a week that exceeds the overtime work threshold shown below, not including hours in excess of 60 hours in a calendar week.
| Starting on | Hours in excess of | And no more than |
|---|---|---|
| January 1, 2024 | 56 hours | 60 hours |
| January 1, 2026 | 52 hours | |
| January 1, 2028 | 48 hours | |
| January 1, 2030 | 44 hours | |
| January 1, 2032 | 40 hours |
How to claim the credit
If you are an eligible farmer that pays eligible overtime, you compute the credit when filing your return. While the eligible farmer computes the credit, the owners of the business (for example partners or shareholders) receive the credit. In addition, an advance payment option may be requested to receive a portion of the credit amount sooner.
Advance payment option
If you are an eligible farmer, you may request an advance payment for the portion of credit based on the overtime you paid from January 1–July 31. You must submit an application to the New York State Department of Agriculture and Markets by September 30.
If approved, the New York State Department of Agriculture and Markets will issue a certificate of advance payment. The business owners (for example partners or shareholders) can request their share of the advance payment from the Tax Department. This request must be made no later than November 1, using their online services account.
Recordkeeping requirements
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See, farm employer overtime credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
Additional information
- Farm employer overtime credit: eligible farmers income test
- Form CT-661, Farm Employer Overtime Credit and Attachment, and its instructions (for corporations)
- Form IT-661, Farm Employer Overtime Credit and Attachment, and its instructions (for all others)
To learn about other New York State tax credits available to businesses, see Business incentives.