* § 38. Minimum wage reimbursement credit. (a) A taxpayer that is an
eligible employer or an owner of an eligible employer as defined in
subdivision (b) of this section shall be eligible for a credit against
the tax imposed under article nine, nine-A, twenty-two, or thirty-three
of this article, pursuant to the provisions referenced in subdivision
(e) of this section.

(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.

(c) For taxable years beginning on or after January first, two
thousand 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 cents. For
taxable years beginning on or after January first, two thousand 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 thousand 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 minimum wage rate
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 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.

(d) Employer prohibition. An employer shall not discharge an employee
and hire an eligible employee solely for the purpose of qualifying for
this credit. An eligible employee who is used as the basis for this
credit may not be used as the basis of any other credit allowed under
this chapter.

(e) Cross references: For application of the credit provided in this
section, see the following provisions of this chapter:

(2) Article 9-A: Section 210-B, subdivision 40.

(3) Article 22: Section 606, subsection (aaa).

(4) Article 33: Section 1511, subdivision (cc).

* NB There are 2 § 38's