S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4810
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 26, 2019
                                ___________
 
 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 44 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
 NINETEEN, 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.
              

                                                            LBD10872-01-9

 S. 4810                             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 NINETEEN AND BEFORE
 JANUARY FIRST, TWO THOUSAND TWENTY-TWO, 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, howev-
 er, 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 difference
 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, 2019.