N.Y. Tax Law § 42-a

§ 42-a. Farm employer overtime credit. (a) Notwithstanding subdivision\n(f) of section forty-two of this article, a taxpayer that is a farm\nemployer or an owner of a farm employer shall be eligible for a credit\nagainst the tax imposed under article nine-A or twenty-two of this\nchapter, pursuant to the provisions referenced in subdivision (i) of\nthis section.\n (b) A farm employer is a corporation (including a New York S\ncorporation), a sole proprietorship, a limited liability company or a\npartnership that is an eligible farmer.\n (c) For purposes of this section, the term "eligible farmer" means a\ntaxpayer whose federal gross income from farming as defined in\nsubsection (n) of section six hundred six of this chapter for the\ntaxable year is at least two-thirds of excess federal gross income.\nExcess federal gross income means the amount of federal gross income\nfrom all sources for the taxable year in excess of thirty thousand\ndollars. For purposes of this section, payments from the state's\nfarmland protection program, administered by the department of\nagriculture and markets, shall be included as federal gross income from\nfarming for otherwise eligible farmers.\n (d) An eligible farm employee is an individual who meets the\ndefinition of a "farm laborer" under section two of the labor law who is\nemployed by a farm employer in New York state, but excluding general\nexecutive officers of the farm employer.\n (e) Eligible overtime is the aggregate number of hours of work\nperformed during the taxable year by an eligible farm employee that in\nany calendar week exceeds the overtime work threshold set by the\ncommissioner of labor pursuant to the recommendation of the farm\nlaborers wage board, provided that work performed in such calendar week\nin excess of sixty hours shall not be included.\n (f) Special rules. If more than fifty percent of such eligible\nfarmer's federal gross income from farming is from the sale of wine from\na licensed farm winery as provided for in article six of the alcoholic\nbeverage control law, or from the sale of cider from a licensed farm\ncidery as provided for in section fifty-eight-c of the alcoholic\nbeverage control law, then an eligible farm employee of such eligible\nfarmer shall be included for purposes of calculating the amount of\ncredit allowed under this section only if such eligible farm employee is\nemployed by such eligible farmer on qualified agricultural property as\ndefined in paragraph four of subsection (n) of section six hundred six\nof this chapter.\n (g) The amount of the credit allowed under this section shall be equal\nto the aggregate amount of such credit allowed per eligible farm\nemployee, as follows. The amount of the credit allowed per eligible farm\nemployee shall be equal to one hundred eighteen percent of the product\nof (1) the eligible overtime worked during the taxable year by the\neligible farm employee and (2) the overtime rate paid by the farm\nemployer to the eligible farm employee less such employee's regular rate\nof pay.\n (h)(1) Taxpayers shall have the option to request an advance payment\nof the portion of the amount of tax credit they are allowed under this\nsection for the amount of eligible overtime that the farm employer paid\nfrom January first through July thirty-first. To be eligible for the\nadvance payment, the farm employer must submit by September thirtieth a\nproperly completed application to the department of agriculture and\nmarkets, in a form prescribed by the commissioner of agriculture and\nmarkets, that demonstrates how much the farm employer paid in eligible\novertime during that period. After reviewing a farm employer's completed\napplication for the advance payment of a portion of the amount of tax\ncredit allowed under this section, the department of agriculture and\nmarkets may issue to that farm employer a certificate of tax credit that\nspecifies the exact amount of the tax credit under this article that a\ntaxpayer may claim as an advance payment pursuant to this subdivision.\n (2) A taxpayer must submit a request to the department in the manner\nprescribed by the commissioner after it has been issued a certificate of\ntax credit by the department of agriculture and markets pursuant to\nparagraph one of this subdivision (or such certificate has been issued\nto a partnership, limited liability company or subchapter S corporation\nin which it is a partner, member or shareholder, respectively, that is a\nfarm employer), but such request must be submitted no later than\nNovember first of the taxable year for which the credit is being\nclaimed. For those taxpayers who have requested an advance payment and\nfor whom the commissioner has determined to be eligible for this credit,\nthe commissioner shall advance a payment of the portion of the amount of\ntax credit allowed to the taxpayer. The taxpayer will claim on the\ntaxpayers' return for the taxable year the portion of the amount of tax\ncredit allowed for eligible overtime paid by the farm employer from\nAugust first through December thirty-first. The taxpayer must properly\nreconcile the advance payment of tax credit allowed under this\nsubdivision on the taxpayer's return.\n (3) If a taxpayer that has received an advance payment is not an\neligible farmer for the taxable year for which it received an advance\npayment, the taxpayer shall be required to add back as tax the amount of\nadvance payment the taxpayer received during the taxable year.\n (4) Notwithstanding any provision of this chapter, employees of the\ndepartment of agriculture and markets and the department shall be\nallowed to share and exchange:\n (i) information derived from tax returns or reports that is relevant\nto a taxpayer's eligibility for the credit allowed by this section;\n (ii) information regarding the credit applied for, allowed or claimed\npursuant to this section and regarding taxpayers that are applying for\nthe credit or that are claiming the credit; and\n (iii) information collected by the department of agriculture and\nmarkets and exchanged between the department of agriculture and markets\nand the department pursuant to this section shall not be subject to\ndisclosure or inspection under the state's freedom of information law.\n (i) Cross references: For application of the credit provided in this\nsection, see the following provisions of this chapter:\n (1) Article 9-A: Section 210-B, subdivision 58.\n (2) Article 22: Section 606, subsection (nnn).\n