Overtime Tax Credit Available to Agriculture Employers

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The Oregon Legislature in February 2022 approved House Bill (HB) 4002: Oregon Agriculture Overtime, which requires agricultural employers to pay certain workers for overtime hours worked.  

The measure also creates a refundable personal or corporate income tax credit for a percentage of paid overtime wages for calendar years 2023-2028 to help those employers meet the requirement. Also of benefit to eligible taxpayers is Senate Bill (SB) 1524 (2022), which adds the provision that a three-year net operating loss carryback is allowed.        

The overtime tax credit allowed is based on employee hours, overtime wages paid and the agricultural sector. The hour thresholds and credit percentages decrease over the six-year phase-in period. The Agricultural Employer Overtime Tax Credit Tables can be viewed online.

All taxpayers who apply for the tax credit will be granted an automatic filing extension.  

More information about the tax credit is also available online.

Employers can apply through Revenue Online Jan. 1-31, 2024. Late applications will not be accepted. Approval letters with the allowed credit amount will be mailed by June 1, 2024.  

General tax credit questions for the Oregon Department of Revenue can be emailed to Ag.Overtime@dor.oregon.gov. Contact the Oregon Department of Labor & Industries at Ag.Overtime@boli.oregon.gov. with wage and hour questions.  

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