S T A T E O F N E W Y O R K
________________________________________________________________________
635
2025-2026 Regular Sessions
I N S E N A T E
(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:
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 50 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] SUCH INDIVIDUAL is paid
at such minimum wage rate by the eligible employer, and (iv) a student
during the period in which [he or she] SUCH INDIVIDUAL is paid at such
minimum wage rate by the taxpayer. FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, 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 SUCH INDIVIDUAL 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 SUCH
INDIVIDUAL IS PAID AT SUCH RATE THAT DOES NOT EXCEED SUCH MINIMUM WAGE
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
(c) For taxable years beginning on or after January first, two thou-
sand fourteen and before January first, two thousand fifteen, the amount
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-FIVE AND BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, 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, 2025.