Farm overtime tax credit available for North Fork farmers in 2026

North Fork farmers can start registering now for a state tax credit that reimburses them for overtime wages paid to farmworkers — a program unique to New York that helps offset mandatory overtime costs.

The state Agriculture Department opened its advance registration portal this week for the farm overtime reimbursement program, the only one of its kind in the country. Eligible farms can register now for overtime wages paid between Jan. 1 through July 31, with reimbursement applications opening Aug. 1 through Sept. 30.

The credit covers overtime costs between the state’s threshold — which just dropped from 56 hours to 52 hours on Jan. 1 — and 60 hours per week. Farmers are reimbursed at 118%, with the extra 18% accounting for interest on operating loans they take out to cover payroll.

“New York is very fortunate because no other state has this,” said Bill Zalakar, executive director of the Long Island Farm Bureau. 

The program was created in 2019 when the state mandated overtime pay for farmworkers, a first-in-the-nation requirement that drew pushback from the agriculture industry.

The threshold started at 60 hours and drops every few years, eventually heading toward 40 hours. The reimbursement helps farms absorb costs during busy seasons when workers log long hours during harvest or planting.

Mr. Zalakar estimates roughly 100 Long Island farms might use the credit, with about 60% of the region’s 600 farms located on the North Fork. Eligible operations include vegetable farms, vineyards and aquaculture businesses.

A new option this year allows farmers to receive reimbursement upfront through advance enrollment, rather than waiting until year-end, a change that could help with cash flow during the season.

Farms that hired employees through a Professional Employer Organization in 2024 or 2025 can also claim a one-time catch-up credit, but only until Feb. 1.

The program does require detailed recordkeeping and tax filings, which Mr. Zalakar acknowledged can be challenging for small family farms. Many payroll services don’t know how to handle the credit properly, and past complaints centered on confusion over which business entity would receive payment, though the state appears to have resolved those issues.

“A lot of people in the agricultural industry just want to go out, produce their crops, take care of the fields, harvest their crops,” Mr. Zalakar said. “That’s why it’s important through the media to help make sure that these people know the different programs [available to them].”

To register, farm employers can visit agriculture.ny.gov or contact [email protected] or 518-457-7076.