N.Y.
Tax Law Section 42-A
Farm employer overtime credit
(a)
Notwithstanding subdivision (f) of § 42 (Farm workforce retention credit)section forty-two of this article, a taxpayer that is an eligible farm employer or an owner of an eligible farm employer shall be eligible for a credit against the tax imposed under article nine-A or twenty-two of this chapter, pursuant to the provisions referenced in subdivision (h) of this section.(b)
For purposes of this section, the term “eligible farm employer” means a taxpayer who received an overtime expense certificate pursuant to Agriculture & Markets Law § 335 (Tax credit)section three hundred thirty-five of the agriculture and markets law and whose federal gross income from farming as defined in subsection (n) of § 606 (Credits against tax)section six hundred six of this chapter for the taxable year is at least two-thirds of excess federal gross income. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. For purposes of this section, payments from the state’s farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming for otherwise eligible farmers.(c)
Special rules. If more than fifty percent of such eligible farm employer’s federal gross income from farming is from the sale of wine from a licensed farm winery as provided for in article six of the alcoholic beverage control law, or from the sale of cider from a licensed farm cidery as provided for in Alcoholic Beverage Control Law § 58-C (Farm cidery license)section fifty-eight-c of the alcoholic beverage control law, then an eligible farm employee of such eligible farmer shall be included for purposes of calculating the amount of credit allowed under this section only if such eligible farm employee is employed by such eligible farmer on qualified agricultural property as defined in paragraph four of subsection (n) of § 606 (Credits against tax)section six hundred six of this chapter.(d)
The amount of the credit allowed under this section shall be equal to one hundred eighteen percent of the aggregate amount of overtime expense paid by the qualified farm employer as certified by the department of agriculture and markets pursuant to section three hundred thirty-five of the agriculture and markets law.(e)
A taxpayer who received a preliminary overtime expense certificate pursuant to Agriculture & Markets Law § 335 (Tax credit)section three hundred thirty-five of the agriculture and markets law shall have the option to request an advance payment of the portion of the amount of tax credit they are allowed under this section equal to one hundred eighteen percent of aggregate amount of overtime expense that the farm employer paid from January first through July thirty-first, as certified by the department of agriculture and markets pursuant to Agriculture & Markets Law § 335 (Tax credit)section three hundred thirty-five of the agriculture and markets law. A taxpayer must submit an advanced payment request to the department in the manner prescribed by the commissioner after it has been issued a preliminary overtime expense certificate by the department of agriculture and markets pursuant to article twenty-five-C of the agriculture and markets law (or such certificate has been issued to a partnership, limited liability company or subchapter S corporation in which it is a partner, member or shareholder, respectively, that is a farm employer), but such request must be submitted no later than November first of the taxable year for which the credit is being claimed. For those taxpayers who have requested an advance payment and for whom the commissioner has determined to be eligible for this credit, the commissioner shall advance a payment of the portion of the amount of tax credit allowed to the taxpayer. The taxpayer will claim on the taxpayers’ return for the taxable year the portion of the amount of tax credit allowed for eligible overtime paid by the farm employer from August first through December thirty-first. The taxpayer must properly reconcile the advance payment of tax credit allowed under this subdivision on the taxpayer’s return.(f)
If a taxpayer that has received an advance payment is not an eligible farm employer or an owner of an eligible farm employer for the taxable year for which it received an advance payment, the taxpayer shall be required to add back as tax the amount of advance payment the taxpayer received during the taxable year.(g)
Notwithstanding any provision of this chapter, employees of the department of agriculture and markets and the department shall be allowed to share and exchange:(i)
information derived from tax returns or reports that is relevant to a taxpayer’s eligibility for the credit allowed by this section;(ii)
information regarding the credit applied for, allowed or claimed pursuant to this section and regarding taxpayers that are applying for the credit or that are claiming the credit; and(iii)
information collected by the department of agriculture and markets and exchanged between the department of agriculture and markets and the department pursuant to this section shall not be subject to disclosure or inspection under the state’s freedom of information law.(h)
Cross references: For application of the credit provided in this section, see the following provisions of this chapter:(1)
Article 9-A: Section 210-B, subdivision 58.(2)
Article 22: Section 606, subsection (nnn).
Source:
Section 42-A — Farm employer overtime credit, https://www.nysenate.gov/legislation/laws/TAX/42-A (updated May 16, 2025; accessed Jun. 21, 2025).
