A06748 amends the New York tax law’s minimum wage reimbursement credit. The bill updates the definition of an eligible employee for purposes of the credit for taxable years beginning on or after January 1, 2025. Under the new language, the credit would apply not only to employees paid at the minimum wage, but also to certain 16- to 19-year-old student employees paid at a rate up to 50 cents above the minimum wage.
The bill also revises the credit calculation for taxable years beginning on or after January 1, 2025 and before January 1, 2028. For qualifying hours worked by eligible employees paid at or below minimum wage plus 50 cents, the credit would equal the number of qualifying hours multiplied by $1.35. The bill retains the existing structure of the credit and includes a conforming provision that would reduce the state credit amount if the federal minimum wage rises above 85 percent of New York’s minimum wage, so that the credit reflects the difference between the two wage levels.
Impact
This bill would amend section 38 of the Tax Law, renumbering it as section 50 and expanding the scope of the minimum wage reimbursement credit for eligible employers, including corporations, sole proprietorships, LLCs, and partnerships. It would broaden the class of covered workers for the credit and extend the credit formula to wages up to minimum wage plus 50 cents for a limited period beginning in tax year 2025. Employers that hire qualifying young student workers at low wages could receive a larger or more flexible tax benefit, while the Department of Taxation and Finance would need to administer the revised eligibility and calculation rules.
Sentiment
No committee transcript or vote record is available with the bill text, so there is no direct evidence of support or opposition from legislative debate. Based on the bill’s structure, it appears intended as a targeted tax incentive for employers who hire low-wage student workers, suggesting a generally pro-business and workforce-supportive policy approach. The absence of recorded votes or discussion means the overall sentiment cannot be measured from the available materials.
Contention
The main policy issue is the expansion of the credit beyond employees paid exactly at the minimum wage to those paid up to 50 cents above it, which could be viewed as broadening relief for employers or as increasing the cost of the tax expenditure. Another possible point of contention is the focus on 16- to 19-year-old student workers, which may raise questions about whether the credit is appropriately targeted or whether it favors certain employers and seasonal/entry-level labor arrangements. The bill also contains an automatic adjustment tied to changes in the federal minimum wage, which could affect the value of the credit over time and may be a point of concern for fiscal planners.
Enacts the "living wage for all act" in relation to raising the minimum wage to $30 by January 1, 2030 for large employers and by January 1, 2035 for small employers, and by a percentage based on inflation thereafter, providing for minimum wage requirements for miscellaneous industry workers, and minimum wage for incarcerated individuals working in correctional facilities; repeals provisions of law relating to minimum wage increases.
Provides corporation business tax credits and gross income tax credits to small business employers and farm employers related to increase in State minimum wage.
Enacts the "fair pay for home care act" relating to minimum wages applicable to home care aides; provides for a minimum wage of 150% of the applicable statewide or regional minimum wage.