S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    235
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 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 48 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-THREE, 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00114-02-3
              

 S. 235                              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-THREE  AND
 BEFORE  JANUARY FIRST, TWO THOUSAND TWENTY-SIX, 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, 2023.