2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 38*2 - Minimum Wage Reimbursement Credit.

* §  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