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What is the Farm Workforce Retention Credit?

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The Farm Workforce Retention Credit is a New York State program enacted in 2016 that provides refundable tax credits for farm employers and owners of farm employers. Currently it's effective for any tax years beginning after January 1, 2017 and before January 1, 2022.

Click here to get our New York Farmer's Tax Advantages Kit - a free resource to help farmers claim credits, protect their assets and put more money back in their pockets.

Farm employer

For purposes of the farm workforce retention credit, a farm employer is a taxpayer subject to tax under Article 9-A or Article 22 that:

  • is a corporation (including a New York S corporation), a sole proprietorship, a limited liability partnership (LLC), or a partnership

AND

  • is also an eligible farmer.

Eligible farmer

According to the New York State Department of Tax and Finance...

An eligible farmer is a taxpayer whose federal gross income from farming for the tax year is at least two-thirds of excess federal gross income.

Excess federal gross income is the amount of federal gross income from all sources for the tax year in excess of $30,000. For purposes of the Farm Workforce Retention Credit, farmers must include payments from the state's Agricultural and Farmland Protection Program administered by the New York State Department of Agriculture and Markets in federal gross income from farming.

Eligible farm employee

An eligible farm employee is an individual who is employed for 500 or more hours per tax year by a farm employer in New York State, but excluding general executive officers of the farm employer. Workers who are part of the H-2A Temporary Agricultural Worker Program that meet the defenition of an eligible farm employee may be included in the computation of this credit.

The amount of credit

The Farm Workforce Retention Credit is equal to a fixed dollar amount per eligible farm employee. The credit amounts per eligible farm employee by tax year are shown in the chart below:

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Posted in: Taxes, Labor law, Payroll 0 Comments