BILL NUMBER: S635
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the tax law, in relation to minimum wage reimbursement
credit
 
PURPOSE:
This bill expands the eligibility to receive the minimum wage reimburse-
ment credit to employers who pay the minimum wage plus fifty cents to
certain employees and extends the credit to January 1, 2028.
 
SUMMARY OF PROVISIONS:
Section one amends subdivisions (b) and (c) of section 38 of the tax law
to extend the provisions of the minimum wage reimbursement credit to
January 1, 2028 and to expand eligibility to employers who pay the mini-
mum wage plus fifty cents to eligible persons after January 1, 2025.
Section two establishes the effective date.
 
JUSTIFICATION:
The minimum wage reimbursement credit, established pursuant to chapter
59 of the laws of 2013, affords taxpayers who are eligible employers or
owners of eligible employers the ability to obtain a refundable credit
equal to the number of hours worked by eligible employees when such
employees are paid the minimum wage multiplied by the applicable tax
credit rate.
This tax credit was meant to incentivize employers to hire and train
young people who are enrolled in a full or part-time educational insti-
tution. Unfortunately, the credit expired at the end of 2018, which
necessitates the passage of this bill in short order so that student-em-
ployees will continue to be offered job opportunities that provide much
needed work experience.
 
LEGISLATIVE HISTORY:
2023-24: S.235/A.4809 Referred to Investigations and Government
Operations/Referred to Ways and Means
2021-22: S.2653/A.3845 Referred to Investigations and Government
Operations/Referred to Ways and Means
2019-20: S.4810/A.6988 Referred to Investigations and Government
Operations/Referred to Ways and Means
2017-18: S.6793A Passed Senate.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Takes effect immediately and applies to taxable years beginning on and
after January 1, 2025.