S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2653
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2021
                                ___________
 
 Introduced  by Sens. GALLIVAN, AKSHAR, RITCHIE -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government 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:
 
   Section 1. Section 38 of the tax law, as added by section 1 of part EE
 of chapter 59 of the laws of 2013, is renumbered section 45 and subdivi-
 sions (b) and (c) are amended to read as follows:
   (b) An eligible employer is a corporation  (including  a  New  York  S
 corporation),  a  sole  proprietorship, a limited liability company or a
 partnership. An eligible employee is an individual who is  (i)  employed
 by an eligible employer in New York state, (ii) paid at the minimum wage
 rate  as defined in article nineteen of the labor law during the taxable
 year by the eligible employer, (iii) between the  ages  of  sixteen  and
 nineteen  during  the  period in which he or she is paid at such minimum
 wage rate by the eligible employer, and (iv) a student during the period
 in which he or she is paid at such minimum wage rate  by  the  taxpayer.
 FOR  TAXABLE  YEARS  BEGINNING  ON AND AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-ONE, AN ELIGIBLE EMPLOYEE IS AN INDIVIDUAL WHO IS (I) EMPLOYED BY
 AN ELIGIBLE EMPLOYER IN NEW YORK STATE, (II) PAID AT A  RATE  THAT  DOES
 NOT  EXCEED  THE MINIMUM WAGE RATE AS DEFINED IN ARTICLE NINETEEN OF THE
 LABOR LAW PLUS FIFTY CENTS DURING  THE  TAXABLE  YEAR  BY  THE  ELIGIBLE
 EMPLOYER,  (III)  BETWEEN  THE  AGES  OF SIXTEEN AND NINETEEN DURING THE
 PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT DOES NOT EXCEED SUCH
 MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE ELIGIBLE EMPLOYER, AND (IV)  A
 STUDENT  DURING  THE PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT
 DOES NOT EXCEED SUCH MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE TAXPAYER.
   (c) For taxable years beginning on or after January first,  two  thou-
 sand fourteen and before January first, two thousand fifteen, the amount
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01755-01-1

 S. 2653                             2
 
 of  the  credit allowed under this section shall be equal to the product
 of the total number of hours worked during the taxable year by  eligible
 employees  for  which they were paid at the minimum wage rate as defined
 in  article  nineteen  of  the labor law and [seventy five] SEVENTY-FIVE
 cents. For taxable years beginning on or after January first, two  thou-
 sand  fifteen and before January first, two thousand sixteen, the amount
 of the credit allowed under this section shall be equal to  the  product
 of  the total number of hours during the taxable year worked by eligible
 employees for which they were paid at such minimum  wage  rate  and  one
 dollar  and  thirty-one  cents.  For taxable years beginning on or after
 January first, two thousand sixteen and before January first, two  thou-
 sand nineteen, the amount of the credit allowed under this section shall
 be  equal to the product of the total number of hours during the taxable
 year worked by eligible employees for which they were paid at such mini-
 mum wage rate and one dollar and thirty-five cents.  FOR  TAXABLE  YEARS
 BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE
 JANUARY FIRST, TWO  THOUSAND  TWENTY-FOUR,  THE  AMOUNT  OF  THE  CREDIT
 ALLOWED  UNDER  THIS  SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL
 NUMBER OF HOURS DURING THE TAXABLE YEAR WORKED BY ELIGIBLE EMPLOYEES FOR
 WHICH THEY WERE PAID AT A RATE THAT DOES NOT EXCEED  SUCH  MINIMUM  WAGE
 RATE  PLUS  FIFTY  CENTS AND ONE DOLLAR AND THIRTY-FIVE CENTS. Provided,
 however, if the federal minimum wage established by federal law pursuant
 to 29 U.S.C. section 206 or its successors is  increased  above  eighty-
 five  percent  of the minimum wage in article nineteen of the labor law,
 the dollar amounts in this subdivision shall be reduced to  the  differ-
 ence  between  the minimum wage in article nineteen of the labor law and
 the federal minimum wage.  Such reduction would take effect on the  date
 that employers are required to pay such federal minimum wage.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2021.