Bill > A06748

This bill modifies the existing tax law regarding a minimum wage reimbursement credit for employers in New York state. The bill updates the definition of an "eligible employee" to include individuals aged 16-19 who are employed in New York and paid at or near the minimum wage rate. Starting in 2025, the credit will apply to employees paid up to fifty cents above the minimum wage rate. The credit amount is calculated by multiplying the total hours worked by eligible employees during the taxable year by a set dollar amount (previously seventy-five cents, then one dollar and thirty-one cents, and later one dollar and thirty-five cents). For taxable years between 2025 and 2028, the credit will be calculated by multiplying the total hours worked by eligible employees (at or near minimum wage) by one dollar and thirty-five cents. The bill also includes a provision that would reduce the credit amount if the federal minimum wage increases to more than 85% of New York's minimum wage. The changes aim to provide financial support to employers who hire and pay young workers at or near the minimum wage rate, with the credit serving as a partial reimbursement for labor costs.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A6748