Bill > A05705

This bill establishes a tax credit for employers of "miscellaneous industry workers" (a specific classification under New York state labor regulations) to help offset the financial impact of minimum wage requirements for tipped employees. Starting in January 2026, employers can claim a tax credit equal to the tip allowance rate for miscellaneous industry workers that was in effect on December 31, 2019. If the credit amount exceeds the employer's tax liability for a given year, the excess can be treated as an overpayment and credited or refunded, though no interest will be paid on the refund. The bill amends both the personal income tax law and corporate tax law to implement this credit, and gives the commissioners of taxation and finance and labor the authority to create regulations for implementing the credit. The purpose appears to be to provide financial relief to businesses employing tipped workers as minimum wage requirements potentially increase their labor costs.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A5705