Last updated on February 17th, 2026

If your New York State business operates as a farm—whether farming is your main line of business or not—you may be eligible for several additional tax credits and exemptions through the state. Below are nine tax incentives for businesses engaged in farming in New York State. For NYS tax purposes, “farming” includes the raising or production of field crops, fruits, vegetables, livestock and livestock products, honey and beeswax, maple syrup, and other agricultural commodities.

1. Alcoholic Beverages Tax Exemption: In New York State, agricultural products used in the production of alcoholic beverages are exempt from alcoholic beverages tax.
2. Sales Tax Exemptions and Refunds: Farm businesses in NYS are exempt from paying state and local sales and use taxes for certain purchases. These purchases include farm machinery, equipment, supplies, computers, certain vehicles, building materials, certain services, and utilities used in farm production or operation. Farms can also apply for a refund of sales tax paid on motor fuel and highway diesel motor fuel used in farm production or operation.
3. Farm Building Exemption: New York State’s Real Property Tax Law provides a ten-year property tax exemption for newly constructed or reconstructed agricultural structures.
4. Farm Workforce Retention Credit: Farm employers and owners of farm employers with an eligible farm employee (employed at least 500 hours) may qualify for a credit of $1,200 per employee.
5. Investment Tax Credit: Eligible farm businesses that place qualified property (i.e., machinery, buildings, or equipment) into service during the tax year may be able to claim 20% of the cost of the property.
6. Excelsior Job Program Tax Credits: Agricultural operations in New York that create at least five net new jobs may be eligible for Excelsior jobs tax credits, investment tax credits, research and development tax credits, real property tax credits, and child care services tax credits through the Excelsior Jobs Program.
7. Farm Employer Overtime Credit: Eligible farm businesses that pay a farm employee overtime may be eligible for a tax credit.
8. Farm Donations to Food Pantries Credit: Farm businesses that make qualified donations to an eligible food pantry are entitled to a tax credit equal to 25% of the fair market value of the donation.
9. Farmers’ School Tax Credit: Farm businesses that pay school district property taxes on qualified agricultural property are eligible for a tax credit. The amount of the credit is dependent on the number of qualified acres and the amount of school district property taxes paid.

Questions?

If you’re wondering whether your brewery or distillery qualifies for these or other state or federal tax incentives, please don’t hesitate to reach out to our team at RBT CPAs. RBT is here to make sure you make the most of available tax-saving opportunities. Call us today to learn more and find out how we can be Remarkably Better Together.