Investment Tax Credit (ITC) for farmers in New York

Your next equipment purchase could come with a 20% tax credit.

If you earn at least two-thirds of your income from farming, you may qualify for the New York State Investment Tax Credit (ITC) — a powerful way to reduce your taxes and reinvest in your operation.

Here’s how it works

• Eligible farmers can claim 20% of the investment cost on qualifying new or used tangible farm equipment.
• The credit applies to equipment placed in service in New York State on or after April 1, 2022.
• For property placed in service after January 1, 2023, unused credits may be refunded directly to eligible farmers.
• Equipment must be purchased (not leased) and used in farming operations, not custom hire services.
• Agricultural buildings may also qualify.

The credit is claimed through your personal income tax return—your accountant will handle the paperwork and determine how much you qualify for.

Important things to know

• Not all farmers automatically qualify; your accountant can confirm eligibility.
• Equipment must be kept for at least 60 months or the credit may need to be repaid.
• Vehicles used on public roads (like dump trucks) and equipment for electricity generation (like solar panels) do not qualify.

Why It Matters

With up to 20% back on qualifying purchases, the NYS Investment Tax Credit can make upgrading your equipment more affordable —especially as part of your year-end tax planning.

How Monroe Tractor can help

At Monroe Tractor, we know farming takes more than hard work—it takes smart investment. Timing those equipment purchases to take advantage of available tax incentives can make a real difference for your operation. Our team is here to help you get the most from your investment by:

• Recommending equipment that may qualify for the New York State Investment Tax Credit (ITC)
• Coordinating delivery and setup so your equipment is properly placed in service
• Supplying all the purchase documentation you’ll need for your tax records

Partner with Monroe Tractor to make sure your next equipment purchase works as hard for your farm as you do.

Next Step:

Contact your accountant to see if you qualify and how much you could save with the NYS Investment Tax Credit.

Disclaimer: This is for informational purposes only and is not tax or legal advice. Always consult a qualified tax professional for advice tailored to your circumstances.