S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  415--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by Sens. JACKSON, BRISPORT, BROUK, CLEARE, COMRIE, GIANARIS,
   GONZALEZ, HARCKHAM, HOYLMAN-SIGAL, LIU, MAY,  MAYER,  MYRIE,  PERSAUD,
   RAMOS,  RIVERA,  SALAZAR,  SANDERS,  SERRANO,  WEBB  -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Labor  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the labor law, in relation to providing for minimum wage
   requirements for miscellaneous industry workers; and to amend the  tax
   law, in relation to establishing the one fair wage reimbursement cred-
   it
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 196-d of the labor law, as added by chapter 1007 of
 the laws of 1968, is amended to read as follows:
   § 196-d. Gratuities. No employer or [his] THEIR agent or an officer or
 agent of any corporation, or any other person shall  demand  or  accept,
 directly  or  indirectly,  any  part  of  the gratuities, received by an
 employee, or retain any part of a gratuity or of any charge purported to
 be a gratuity for an employee. This provision shall  not  apply  to  the
 checking  of  hats,  coats or other apparel. Nothing in this subdivision
 shall be construed as affecting the allowances from the minimum wage for
 gratuities in the amount determined in accordance with the provisions of
 article  nineteen  of  this  chapter  nor  as  affecting  practices   in
 connection  with  banquets  and  other  special  functions where a fixed
 percentage of the patron's  bill  is  added  for  gratuities  which  are
 distributed to employees, nor to the sharing of tips by a [waiter] SERV-
 ER, IF THE EMPLOYER TAKES A CREDIT FOR GRATUITIES AS PERMITTED BY SUBDI-
 VISION  TWO  OF  SECTION  SIX  HUNDRED  FIFTY-TWO OF THIS CHAPTER with a
 [busboy] BUSSER or similar employee, OR, IF THE EMPLOYER DOES NOT TAKE A
 CREDIT FOR GRATUITIES AS PERMITTED BY SUBDIVISION  TWO  OF  SECTION  SIX
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01382-02-5
 S. 415--A                           2
 
 HUNDRED  FIFTY-TWO  OF  THIS  CHAPTER, WITH ANY OTHER NON-MANAGERIAL AND
 NON-SUPERVISORY EMPLOYEES.
   §  2. Section 651 of the labor law is amended by adding a new subdivi-
 sion 10 to read as follows:
   10. "MISCELLANEOUS INDUSTRY WORKER" MEANS ANY EMPLOYEE COVERED BY  THE
 MINIMUM WAGE ORDER FOR MISCELLANEOUS INDUSTRIES AND OCCUPATIONS PURSUANT
 TO  THE  PROVISIONS OF 12 NYCRR PART 142, INCLUDING, BUT NOT LIMITED TO,
 CAR WASH ATTENDANTS, NAIL SALON WORKERS, TOW TRUCK DRIVERS,  DOG  GROOM-
 ERS,  WEDDING PLANNERS, TOUR GUIDES, VALET PARKING ATTENDANTS, HAIRDRES-
 SERS, AESTHETICIANS, GOLF AND TENNIS INSTRUCTORS, AND DOOR-PERSONS.
   § 3. Subdivisions 2 and 4 of section 652 of the labor law, as  amended
 by section 3 of part S of chapter 56 of the laws of 2023, are amended to
 read as follows:
   2.  Existing  wage  orders.  The  minimum wage orders in effect on the
 effective date of this act shall remain in full force and effect, except
 as modified in accordance with the provisions of this article; provided,
 however, that the minimum wage order for farm workers codified  at  part
 one  hundred  ninety  of  title twelve of the New York code of rules and
 regulations in effect on January first, two  thousand  twenty  shall  be
 deemed to be a wage order established and adopted under this article and
 shall  remain  in full force and effect except as modified in accordance
 with the provisions of this article or article nineteen-A of this  chap-
 ter.
   Such  minimum  wage  orders  shall  be modified by the commissioner to
 increase all monetary amounts specified therein in the  same  proportion
 as  the  increase in the hourly minimum wage as provided in subdivisions
 one, one-a, and one-b of this section, including the  amounts  specified
 in  such  minimum  wage  orders  as  allowances for gratuities, and when
 furnished by the employer to its employees, for meals, lodging,  apparel
 and  other  such  items, services and facilities, EXCEPT THAT THE HOURLY
 CASH WAGE FOR FOOD SERVICE WORKERS, SERVICE EMPLOYEES AND  MISCELLANEOUS
 INDUSTRY  WORKERS  WHO RECEIVE TIPS SHALL NOT BE LESS THAN THE CASH WAGE
 AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, AND THE MAXIMUM  CREDIT
 FOR  TIPS  IN MINIMUM WAGE ORDERS SHALL BE MODIFIED SO THAT SUCH CREDIT,
 WHEN COMBINED WITH SUCH CASH WAGE, IS EQUAL TO THE MINIMUM WAGE, AND THE
 HOURLY CASH WAGE FOR MISCELLANEOUS INDUSTRY WORKERS SHALL  NOT  BE  LESS
 THAN  THE CASH WAGE AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION. All
 amounts so modified shall be rounded off to the nearest five cents.  The
 modified  orders  shall  be  promulgated  by  the commissioner without a
 public hearing, and without reference to a wage board, and shall  become
 effective  on  the  effective date of such increases in the minimum wage
 except as otherwise provided in this  subdivision,  notwithstanding  any
 other provision of this article.
   4.  [Notwithstanding  subdivisions  one, one-a, one-b, and two of this
 section, the wage for an employee who is a food service worker receiving
 tips shall be a cash wage of at least two-thirds  of  the  minimum  wage
 rates set forth in subdivision one of this section, rounded to the near-
 est  five  cents  or seven dollars and fifty cents, whichever is higher,
 provided that the tips of such an employee,  when  added  to  such  cash
 wage,  are  equal  to  or  exceed the minimum wage in effect pursuant to
 subdivisions one, one-a, and one-b of this section and provided  further
 that  no  other cash wage is established pursuant to section six hundred
 fifty-three of this article] (A) NOTWITHSTANDING  SUBDIVISIONS  ONE  AND
 TWO OF THIS SECTION AND SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE,
 THE WAGE FOR AN EMPLOYEE WHO IS A FOOD SERVICE WORKER OR SERVICE EMPLOY-
 EE  RECEIVING  TIPS AND PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART
 S. 415--A                           3
 
 146 SHALL BE, FOR EACH HOUR WORKED IN THE CITY OF NEW YORK, A CASH  WAGE
 OF NOT LESS THAN:
   $12.77 PER HOUR ON AND AFTER JANUARY 1, 2026;
   $14.88 PER HOUR ON AND AFTER JANUARY 1, 2027;
   $17.00 PER HOUR ON AND AFTER JANUARY 1, 2028, AND BEGINNING ON JANUARY
 FIRST,  TWO  THOUSAND  TWENTY-NINE,  A CASH WAGE RATE ESTABLISHED BY THE
 COMMISSIONER ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN  SUBDIVISION
 ONE-B OF THIS SECTION.
   (B)  NOTWITHSTANDING  SUBDIVISIONS  ONE  AND  TWO  OF THIS SECTION AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE WHO IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING  TIPS  AND
 PAID  PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR EACH
 HOUR WORKED IN THE COUNTIES OF NASSAU, SUFFOLK AND WESTCHESTER,  A  CASH
 WAGE OF NOT LESS THAN:
   $12.77 PER HOUR ON AND AFTER JANUARY 1, 2026;
   $14.88 PER HOUR ON AND AFTER JANUARY 1, 2027;
   $17.00 PER HOUR ON AND AFTER JANUARY 1, 2028, AND BEGINNING ON JANUARY
 FIRST,  TWO  THOUSAND  TWENTY-NINE,  A CASH WAGE RATE ESTABLISHED BY THE
 COMMISSIONER ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN  SUBDIVISION
 ONE-B OF THIS SECTION.
   (C)  NOTWITHSTANDING  SUBDIVISIONS  ONE  AND  TWO  OF THIS SECTION AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE WHO IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING  TIPS  AND
 PAID  PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR EACH
 HOUR WORKED OUTSIDE THE CITY OF NEW YORK AND  THE  COUNTIES  OF  NASSAU,
 SUFFOLK AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN:
   $11.50 PER HOUR ON AND AFTER JANUARY 1, 2026;
   $13.00 PER HOUR ON AND AFTER JANUARY 1, 2027;
   $14.50 PER HOUR ON AND AFTER JANUARY 1, 2028;
   $16.00 PER HOUR ON AND AFTER JANUARY 1, 2029, AND BEGINNING ON JANUARY
 FIRST,  TWO THOUSAND THIRTY, A CASH WAGE RATE ESTABLISHED BY THE COMMIS-
 SIONER ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN SUBDIVISION  ONE-B
 OF THIS SECTION.
   (D) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR  AN  EMPLOYEE  WHO IS A MISCELLANEOUS INDUSTRY WORKER RECEIVING TIPS
 AND PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 142  SHALL  BE  FOR
 EACH  HOUR  WORKED IN THE CITY OF NEW YORK, A CASH WAGE OF NOT LESS THAN
 THE CASH WAGE RATE AS DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION ONE-A OF
 THIS SECTION.
   (E) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO THE PROVISIONS OF 12 NYCRR PART 142 SHALL BE FOR
 EACH HOUR WORKED IN THE COUNTIES OF NASSAU, SUFFOLK AND  WESTCHESTER,  A
 CASH  WAGE OF NOT LESS THAN THE CASH WAGE RATE AS DESCRIBED IN PARAGRAPH
 (B) OF SUBDIVISION ONE-A OF THIS SECTION.
   (F) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO THE PROVISIONS OF 12 NYCRR PART 142 SHALL BE FOR
 EACH HOUR WORKED OUTSIDE THE CITY  OF  NEW  YORK  AND  THE  COUNTIES  OF
 NASSAU,  SUFFOLK  AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN THE CASH
 WAGE RATE AS DESCRIBED IN PARAGRAPH (C) OF  SUBDIVISION  ONE-A  OF  THIS
 SECTION.
   §  4. Subdivision 2 of section 653 of the labor law, as added by chap-
 ter 14 of the laws of 2000, is amended to read as follows:
   (2) The commissioner shall, within six months after enactment  of  any
 change  in  the  statutory  minimum wage set forth in subdivision one of
 S. 415--A                           4
 
 section six hundred fifty-two of this article, appoint a wage  board  to
 inquire  and  report  and recommend any changes to wage orders governing
 wages payable to food service workers. Such wage board shall  be  estab-
 lished  consistent with the provisions of subdivision one of section six
 hundred fifty-five of this article, except the  representatives  of  the
 employees  shall  be  selected upon the nomination of the state American
 Federation of Labor/Congress of Industrial Organizations; and  provided,
 further,  that  the  representatives  of the employers shall be selected
 upon the nomination of the New York State Business  Council.  [Any  wage
 order  authorizing  a  lesser  wage  than the previously and statutorily
 mandated minimum wage for such employees shall be reviewed by  the  wage
 board  to  ascertain  at  what  level  such  wage order is sufficient to
 provide adequate maintenance and to protect the health and livelihood of
 employees subject to such a wage order after a statutory increase in the
 mandated minimum wage] NOTWITHSTANDING SECTION SIX HUNDRED FIFTY-FIVE OF
 THIS ARTICLE, A WAGE ORDER UNDER THIS SUBDIVISION SHALL NOT AUTHORIZE  A
 LESSER  WAGE  THAN  THE PREVIOUSLY AND STATUTORILY MANDATED MINIMUM WAGE
 FOR SUCH EMPLOYEES.
   § 5. The tax law is amended by adding a new  section  50  to  read  as
 follows:
   §  50. ONE FAIR WAGE REIMBURSEMENT CREDIT. (A) GENERAL. (1) A TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS
 CHAPTER WHO IS AN EMPLOYER WHO PAYS WAGES AT RATES PURSUANT TO  SUBDIVI-
 SION  FOUR  OF  SECTION  SIX HUNDRED FIFTY-TWO OF THE LABOR LAW SHALL BE
 ALLOWED A CREDIT AGAINST SUCH TAX IN  AN  AMOUNT  TO  BE  CALCULATED  AS
 FOLLOWS:
   (I)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-SIX AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, 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 THE MINIMUM WAGE RATE  AS
 DEFINED  IN  SUBDIVISION  FOUR  OF  SECTION SIX HUNDRED FIFTY-TWO OF THE
 LABOR LAW AND ONE DOLLAR AND FIFTY CENTS.
   (II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOU-
 SAND  TWENTY-SEVEN  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 THE MINIMUM WAGE  RATE
 AS  DEFINED  IN SUBDIVISION FOUR OF SECTION SIX HUNDRED FIFTY-TWO OF THE
 LABOR LAW AND ONE DOLLAR AND THIRTY CENTS.
   (III) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-EIGHT AND BEFORE JANUARY FIRST,  TWO  THOUSAND  TWENTY-NINE,
 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 THE MINIMUM WAGE RATE
 AS DEFINED IN SUBDIVISION FOUR OF SECTION SIX HUNDRED FIFTY-TWO  OF  THE
 LABOR LAW AND ONE DOLLAR AND TWENTY CENTS.
   (IV)  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-NINE AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  THIRTY,  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 THE MINIMUM WAGE RATE AS
 DEFINED IN SUBDIVISION FOUR OF SECTION  SIX  HUNDRED  FIFTY-TWO  OF  THE
 LABOR LAW AND ONE DOLLAR AND TEN CENTS.
   (V)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND THIRTY AND BEFORE  JANUARY  FIRST,  TWO  THOUSAND  THIRTY-ONE,  THE
 S. 415--A                           5
 
 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 THE MINIMUM WAGE RATE AS
 DEFINED  IN  SUBDIVISION  FOUR  OF  SECTION SIX HUNDRED FIFTY-TWO OF THE
 LABOR LAW AND ONE DOLLAR.
   (2) IN ADDITION, IF THE FEDERAL MINIMUM WAGE IS INCREASED ABOVE EIGHT-
 Y-FIVE PERCENT OF THE MINIMUM WAGE RATE AS DEFINED IN  SUBDIVISION  FOUR
 OF SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW, THE DOLLAR AMOUNTS IN
 THIS  SUBDIVISION SHALL BE REDUCED TO THE DIFFERENCE BETWEEN THE MINIMUM
 WAGE RATE AS DEFINED IN SUBDIVISION FOUR OF SECTION SIX  HUNDRED  FIFTY-
 TWO  OF THE LABOR LAW AND THE FEDERAL MINIMUM WAGE. SUCH REDUCTION SHALL
 TAKE EFFECT ON THE DATE THAT EMPLOYERS ARE REQUIRED TO PAY SUCH  FEDERAL
 MINIMUM WAGE.
   (B)  DEFINITIONS.  THE TERM "ELIGIBLE EMPLOYEE" SHALL MEAN AN EMPLOYEE
 WHOSE WAGES ARE SET PURSUANT TO SUBDIVISION FOUR OF SECTION SIX  HUNDRED
 FIFTY-TWO OF THE LABOR LAW.
   (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 61;
   (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (QQQ);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (FF).
   § 6. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
    61.  ONE  FAIR  WAGE REIMBURSEMENT CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF  THE
 CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX  BASED  ON  THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 7. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
 of  the  tax  law  is  amended  by  adding a new clause (lii) to read as
 follows:
 
 (LII) ONE FAIR WAGE                   AMOUNT OF CREDIT UNDER
 REIMBURSEMENT CREDIT                  SUBDIVISION SIXTY-ONE OF
 UNDER SUBSECTION (QQQ)                SECTION TWO HUNDRED TEN-B
 
   § 8. Section 606 of the tax law is amended by adding a new  subsection
 (qqq) to read as follows:
   (QQQ)  ONE  FAIR WAGE REIMBURSEMENT CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
 S. 415--A                           6
 
 EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
 PAID THEREON.
   §  9.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ff) to read as follows:
   (FF) ONE FAIR WAGE REIMBURSEMENT CREDIT. (1) ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE. HOWEVER, IF THE AMOUNT OF  THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   § 10. Severability clause. If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate the remainder of this act, but shall be confined
 in its  operation  to  the  clause,  sentence,  paragraph,  subdivision,
 section  or  part  of  this  act directly involved in the controversy in
 which such judgment shall have been rendered. It is hereby  declared  to
 be  the  intent of the legislature that this act would have been enacted
 even if such invalid clause, sentence, paragraph,  subdivision,  section
 or part of this act had not been included herein.
   §  11. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on and after January 1, 2026.