S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5705
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 2025
                                ___________
 
 Introduced by M. of A. GIGLIO -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to  amend  the  tax  law,  in relation to establishing a tipped
   employee minimum wage tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (qqq) to read as follows:
   (QQQ) TIPPED EMPLOYEE MINIMUM WAGE TAX CREDIT. (1) FOR  TAXABLE  YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, A TAXPAYER
 WHO IS AN EMPLOYER OF MISCELLANEOUS INDUSTRY WORKERS, AS DEFINED IN PART
 ONE  HUNDRED  FORTY-TWO  OF  TITLE TWELVE OF THE OFFICIAL COMPILATION OF
 CODES, RULES, AND REGULATIONS OF THE STATE OF NEW YORK, SHALL BE ALLOWED
 A CREDIT, TO BE COMPUTED IN PARAGRAPH TWO OF THIS SECTION,  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE.
   (2)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-SIX, THE AMOUNT OF CREDIT ALLOWED UNDER THIS  SECTION  SHALL
 BE  EQUAL TO THE TIP ALLOWANCE FOR MISCELLANEOUS INDUSTRY WORKERS EFFEC-
 TIVE AS OF DECEMBER THIRTY-FIRST, TWO THOUSAND  NINETEEN  UNDER  SUBPART
 142-2.5 OF TITLE TWELVE OF THE OFFICIAL COMPILATION OF CODES, RULES, AND
 REGULATIONS  OF  THE  STATE  OF NEW YORK FOR EACH MISCELLANEOUS INDUSTRY
 WORKER EMPLOYEE.
   (3) IF THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SUBSECTION  FOR  ANY
 TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
   (4) THE COMMISSIONER OF TAXATION AND FINANCE, IN CONSULTATION WITH THE
 COMMISSIONER OF LABOR, SHALL HAVE THE AUTHORITY TO PROMULGATE ANY  RULES
 OR REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS CREDIT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02315-01-5
 A. 5705                             2
              

 
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 61 to read as follows:
   61.  TIPPED  EMPLOYEE  MINIMUM  WAGE TAX CREDIT. (A) FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, A TAXPAYER
 WHO IS AN EMPLOYER OF MISCELLANEOUS INDUSTRY WORKERS, AS DEFINED IN PART
 ONE HUNDRED FORTY-TWO OF TITLE TWELVE OF  THE  OFFICIAL  COMPILATION  OF
 CODES, RULES, AND REGULATIONS OF THE STATE OF NEW YORK, SHALL BE ALLOWED
 A  CREDIT,  TO BE COMPUTED IN PARAGRAPH (B) OF THIS SUBDIVISION, AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
   (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  TWENTY-SIX,  THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION SHALL
 BE EQUAL TO THE TIP ALLOWANCE FOR MISCELLANEOUS INDUSTRY WORKERS, EFFEC-
 TIVE AS OF DECEMBER THIRTY-FIRST, TWO THOUSAND  NINETEEN  UNDER  SUBPART
 142-2.5 OF TITLE TWELVE OF THE OFFICIAL COMPILATION OF CODES, RULES, AND
 REGULATIONS  OF  THE  STATE  OF NEW YORK FOR EACH MISCELLANEOUS INDUSTRY
 WORKER EMPLOYEE.
   (C) IF THE AMOUNT OF CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 CHAPTER; PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
   (D) THE COMMISSIONER OF TAXATION AND FINANCE, IN CONSULTATION WITH THE
 COMMISSIONER OF LABOR, SHALL HAVE THE AUTHORITY TO PROMULGATE ANY  RULES
 OR REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS CREDIT.
   § 3. This act shall take effect immediately.