STATE OF NEW YORK
________________________________________________________________________
635
2025-2026 Regular Sessions
IN SENATE(Prefiled)
January 8, 2025
___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to minimum wage reimbursement
credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 38 of the tax law, as added by section 1 of part EE
2 of chapter 59 of the laws of 2013, is renumbered section 50 and subdivi-
3 sions (b) and (c) are amended to read as follows:
4 (b) An eligible employer is a corporation (including a New York S
5 corporation), a sole proprietorship, a limited liability company or a
6 partnership. An eligible employee is an individual who is (i) employed
7 by an eligible employer in New York state, (ii) paid at the minimum wage
8 rate as defined in article nineteen of the labor law during the taxable
9 year by the eligible employer, (iii) between the ages of sixteen and
10 nineteen during the period in which [he or she] such individual is paid
11 at such minimum wage rate by the eligible employer, and (iv) a student
12 during the period in which [he or she] such individual is paid at such
13 minimum wage rate by the taxpayer. For taxable years beginning on and
14 after January first, two thousand twenty-five, an eligible employee is
15 an individual who is (i) employed by an eligible employer in New York
16 state, (ii) paid at a rate that does not exceed the minimum wage rate as
17 defined in article nineteen of the labor law plus fifty cents during the
18 taxable year by the eligible employer, (iii) between the ages of sixteen
19 and nineteen during the period in which such individual is paid at such
20 rate that does not exceed such minimum wage rate plus fifty cents by the
21 eligible employer, and (iv) a student during the period in which such
22 individual is paid at such rate that does not exceed such minimum wage
23 rate plus fifty cents by the taxpayer.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02626-01-5
S. 635 2
1 (c) For taxable years beginning on or after January first, two thou-
2 sand fourteen and before January first, two thousand fifteen, the amount
3 of the credit allowed under this section shall be equal to the product
4 of the total number of hours worked during the taxable year by eligible
5 employees for which they were paid at the minimum wage rate as defined
6 in article nineteen of the labor law and [seventy five] seventy-five
7 cents. For taxable years beginning on or after January first, two thou-
8 sand fifteen and before January first, two thousand sixteen, the amount
9 of the credit allowed under this section shall be equal to the product
10 of the total number of hours during the taxable year worked by eligible
11 employees for which they were paid at such minimum wage rate and one
12 dollar and thirty-one cents. For taxable years beginning on or after
13 January first, two thousand sixteen and before January first, two thou-
14 sand nineteen, the amount of the credit allowed under this section shall
15 be equal to the product of the total number of hours during the taxable
16 year worked by eligible employees for which they were paid at such mini-
17 mum wage rate and one dollar and thirty-five cents. For taxable years
18 beginning on or after January first, two thousand twenty-five and before
19 January first, two thousand twenty-eight, the amount of the credit
20 allowed under this section shall be equal to the product of the total
21 number of hours during the taxable year worked by eligible employees for
22 which they were paid at a rate that does not exceed such minimum wage
23 rate plus fifty cents and one dollar and thirty-five cents. Provided,
24 however, if the federal minimum wage established by federal law pursuant
25 to 29 U.S.C. section 206 or its successors is increased above eighty-
26 five percent of the minimum wage in article nineteen of the labor law,
27 the dollar amounts in this subdivision shall be reduced to the differ-
28 ence between the minimum wage in article nineteen of the labor law and
29 the federal minimum wage. Such reduction would take effect on the date
30 that employers are required to pay such federal minimum wage.
31 § 2. This act shall take effect immediately and shall apply to taxable
32 years beginning on and after January 1, 2025.
