Tax credit programs available to farmers

Several tax credit programs designed to help offset business and labor costs for the agricultural industry for the 2018 tax season are available to New York farmers. The New York State Department of Labor’s Youth Jobs Program and the New York State Tax & Finance Department’s Farm Workforce Retention Credit andMinimum Wage Reimbursement Program are among the nearly one dozen credit and exemption programs available to assist agricultural business owners.

“The agricultural industry, especially the dairy sector, has experienced some challenging times over the last fewyears due to a number of factors, including weather and market conditions,” said State Agriculture Commissioner Richard A. Ball. “We want to remind our farmers that there are assistance programs available to themand opportunities to reduce costs that will have a meaningful impact on their bottom line.”

“Valuable tax credits, such

as the recently increased farm workforce retention credit and a new credit for qualifying donations to food banks, provide farmers an opportunity to reinvest in their land and business,” said New York State Tax & Finance Commissioner Nonie Manion. “We encourage all farmers to take advantage of these incentives.”

“New York’s agricultural industry is a critical sector as our State’s economy continues to expand,” said New York State Labor Commissioner Roberta Reardon. “Farmers should know that there are a multitude of programs available – free of charge – that can help them keep operating costs low. New York relies on its farming communities and the Department of Labor stands ready to help ensure they enjoy sustainable success.”

As of this tax year, the Farm Workforce Retention Credit has increased to $300 per eligible farm employee who is working at least 500 hours annually. It will increase to $500 in the 2019 tax year. The Retention Credit, which may not be combined with other tax credit programs, is expected to save farmers an estimated $14 million in 2018.

The MinimumWage Reimbursement Tax Credit is available to farms who employ students ages 16 to 20 for the 2018 tax year and are paid at the New York minimum wage rate. The credit is equal to the total number of hours worked by the employees during the taxable year for which they are paid the New York minimumwage, multiplied by the applicable tax credit rate for that year, which is $1.35 for 2018. A farm that has six youth employees, working 500 hours through the summer, can claim approximately $4,000 in credits. In 2014, the latest year for which complete data is available, New York state issued nearly $5 million in minimumwage reimbursement tax credits.

Similarly, the goal of the NYSDepartment of Labor’s New York Youth Jobs Program is to help disadvantaged young people have a successful start and encourage businesses, including farms, to provide them with the opportunity to work and acquire critical workforce skills for the future. The program was recently expanded statewide and participating farms can receive tax credits of up to $5,000 to hire eligible new, full-time employees between the ages of 16 and 24 whomeet the criteria of the program. Credits of up to $2,500 are available for part-time employees who meet the criteria.

Both farms and employees need to be certificated to participate in the New York Youth Jobs Program. To apply, businesses should complete the online application by Nov. 30 at www. labor.ny.gov/youthjobs. For more information about the program, call 1-877226-5724 or e-mail: youthjobs@labor.ny.gov.

New York farmers are also eligible to receive a tax credit for qualifying food donations made to food banks and other emergency food programs beginning Jan. 1, 2018. The tax credit is expected to save farmers a total of $10 million annually.

The tax credit, which is supported by the New York State Council on Hunger and Food Policy, is a refundable credit equal to 25 percent of the fair market value of qualified donations up to $5,000. Eligible donations include fresh fruits and vegetables grown or produced in New York state and provided to emergency food programs that qualify for tax exempt status. To claim the credit, the taxpayer must receive proof of the donation in the formof a receipt or written acknowledgment from the eligible food program.

For additional tax credit and exemption programs available through the Department of Tax & Finance, agri- businesses can visit https://www.tax. ny.gov/ bus/ business-incentives.htm and choose Farming and Agriculture.

In addition to the tax credit programs the agency administers, the NYS Department of Labor provides valuable services and programs that offer all business owners the chance to reduce costs and connect to the skilled workforce they require. It also manages the State Registered Apprenticeship and On-the-Job Training programs. Farms can take advantage of the agency’s On-Site Consultation Program, which helps employers provide a safe and healthful workplace for their employees. Each year, the On-Site Consultation Program staff help thousands of businesses across the State by providing no-cost guidance that can help them avoid thousands in the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) fines and penalties.

To learn more, visit https://labor.ny.gov/businessservices/landing.shtm.