Bill > A340

Introduced Session

This bill allows corporation business tax (CBT) credits and gross income tax (GIT) credits for restaurant owners to offset the increased State minimum wage. The bill provides a tax credit equal to: (1) the minimum wage rate required to be paid to an employee multiplied by the number of hours worked by an employee during a tax year; minus (2) the minimum wage rate required to be paid on the day prior to the enactment of the 2019 changes to the minimum wage law, factoring in any otherwise required adjustments to the minimum wage rate, such as for inflation. In the case of an employee who customarily and regularly receives gratuities or tips, the credit will be $3.00 multiplied by the number of hours worked by the employee during. Employees that are employed for deliveries will not be counted in the calculation of the credit. The bill restricts the number of employees that can be used in calculating the tax credit amount, caps the credit amount at $12,500 for each employee included in the calculation of the credit, and limits the credit's availability to the 10 years immediately following the effective date of the bill. A taxpayer will be allowed to claim a credit for no more than three restaurant locations, and the credit will only be available to a taxpayer with five or fewer restaurants.

AI Summary

Committee Categories

Claire Swift (R)*, 

Introduced, Referred to Assembly Labor Committee (on 01/09/2024)

Official Document