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.
Eligible fiscal-year farmers who paid overtime after January 1, 2024, are eligible to claim this credit and request an advance payment of the credit beginning in tax year 2023.
Eligible calendar-year farmers who paid overtime after January 1, 2024, are eligible to claim this credit and request an advance payment of the credit beginning in tax year 2024. They are not eligible in tax year 2023 because the overtime threshold is not reduced from 60 hours to 56 hours until January 1, 2024.
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 after January 1, 2024, 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.
Advanced 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 your 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
- Only fiscal-year filers are eligible for the credit in 2023, provided that they paid eligible overtime after January 1, 2024. If you are an eligible fiscal year filer who paid eligible overtime after January 1, 2024, and you need to obtain a paper form, you may contact us at the phone number shown below after January 1, 2024, to obtain copies of the appropriate 2023 forms.
- Call 518-485-6027 to obtain Form CT-661, Farm Employer Overtime Credit and Attachment, and its instructions (for corporations)
- Call 518-457-5181 to obtain 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.
