A 5705: Establishes a tipped employee minimum wage tax credit; provides the amount of the credit shall be equal to the tip allowance for miscellaneous industry workers.

  
  STATE OF NEW YORK ________________________________________________________________________ 5705 2025-2026 Regular Sessions  IN ASSEMBLY February 20, 2025 ___________ Introduced by M. of A. GIGLIO -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a tipped employee minimum wage tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (qqq) to read as follows: 3 (qqq) Tipped employee minimum wage tax credit. (1) For taxable years 4 beginning on or after January first, two thousand twenty-six, a taxpayer 5 who is an employer of miscellaneous industry workers, as defined in part 6 one hundred forty-two of title twelve of the official compilation of 7 codes, rules, and regulations of the state of New York, shall be allowed 8 a credit, to be computed in paragraph two of this section, against the 9 tax imposed by this article. 10 (2) For taxable years beginning on or after January first, two thou- 11 sand twenty-six, the amount of credit allowed under this section shall 12 be equal to the tip allowance for miscellaneous industry workers effec- 13 tive as of December thirty-first, two thousand nineteen under subpart 14 142-2.5 of title twelve of the official compilation of codes, rules, and 15 regulations of the state of New York for each miscellaneous industry 16 worker employee. 17 (3) If the amount of credit allowed under this subsection for any 18 taxable year exceeds the taxpayer's tax for the taxable year, the excess 19 shall be treated as an overpayment of tax to be credited or refunded in 20 accordance with the provisions of section six hundred eighty-six of this 21 article, provided, however, no interest will be paid thereon. 22 (4) The commissioner of taxation and finance, in consultation with the 23 commissioner of labor, shall have the authority to promulgate any rules 24 or regulations necessary for the implementation of this credit. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02315-01-5 
 A. 5705 2 1 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 2 sion 61 to read as follows: 3 61. Tipped employee minimum wage tax credit. (a) For taxable years 4 beginning on or after January first, two thousand twenty-six, a taxpayer 5 who is an employer of miscellaneous industry workers, as defined in part 6 one hundred forty-two of title twelve of the official compilation of 7 codes, rules, and regulations of the state of New York, shall be allowed 8 a credit, to be computed in paragraph (b) of this subdivision, against 9 the tax imposed by this article. 10 (b) For taxable years beginning on or after January first, two thou- 11 sand twenty-six, the amount of credit allowed under this section shall 12 be equal to the tip allowance for miscellaneous industry workers, effec- 13 tive as of December thirty-first, two thousand nineteen under subpart 14 142-2.5 of title twelve of the official compilation of codes, rules, and 15 regulations of the state of New York for each miscellaneous industry 16 worker employee. 17 (c) If the amount of credit allowed under this subdivision for any 18 taxable year exceeds the taxpayer's tax for the taxable year, the excess 19 shall be treated as an overpayment of tax to be credited or refunded in 20 accordance with the provisions of section six hundred eighty-six of this 21 chapter; provided, however, no interest will be paid thereon. 22 (d) The commissioner of taxation and finance, in consultation with the 23 commissioner of labor, shall have the authority to promulgate any rules 24 or regulations necessary for the implementation of this credit. 25 § 3. This act shall take effect immediately.