NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1200B
SPONSOR: Gonzalez-Rojas TITLE OF BILL:
An act to amend the labor law, in relation to providing for minimum wage
requirements for miscellaneous industry workers; and to amend the tax
law, in relation to establishing the one fair wage reimbursement credit
PURPOSE:
Provides for minimum wage requirements for miscellaneous industry work-
ers; appropriation
SUMMARY OF PROVISIONS:
Section 1 of this bill amends section 196-d of the labor law to allow
tip-sharing by servers with all non-managerial and non-supervisory
employees.
Section 2 of this bill amends section 651 of the labor law by adding a
new subdivision 10 defining "Miscellaneous industry worker."
Section 3 of this bill amends subdivisions 2 and 4 of Section 652 the
Labor Law to set a schedule on which cash wages for food service work-
ers, service employees, and miscellaneous industry workers will increase
until that wage is equivalent to the minimum wage. In New York City, the
cash wage for food service employees receiving tips will be as follows:
$12.77 per hour on or after January 1, 2027;
$14.88 per hour on or after January 1, 2028;
$17.00 per hour on or after January 1, 2029,
Beginning on January 1, 2030, the cash wage cannot be less than the
minimum wage.
In Nassau, Suffolk, and Westchester Counties the cash wage for food
service employees receiving tips will be as follows:
$12.77 per hour on or after January 1, 2027;
$14.88 per hour on or after January 1, 2028;
$17.00 per hour on or after January 1, 2029.
Beginning on January 1, 2030, the cash wage cannot be less than the
minimum wage.
In all other counties, the cash wage for food service employees receiv-
ing tips will be as follows;
$11.50 per hour on or after January 1, 2027;
$13.00 per hour on or after January 1, 2028;
$14.50 per hour on or after January 1, 2029;
$16.00 per hour on or after January 1, 2030. Beginning on January 1,
2031, the cash wage cannot be less than the minimum wage.
For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in New York City must not be less than the cash wage
rate described pursuant to subdivision 1-a(a) of Section 652 of the
Labor Law.
For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in the Nassau, Suffolk, and Westchester counties must
not be less than the cash wage rate described pursuant to subdivision
1-a(b) of Section 652 of the Labor Law.
For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in all other counties must not be less than the cash
wage rate described pursuant to subdivision 1-a(c) of Section 652 of the
Labor Law.
Section 4 of this bill amends subdivision 2 of section 653 of the labor
law to provide that a wage order shall not authorize a lesser wage than
the previously and statutorily mandated minimum wage for food service
workers.
Section 5 of this bill adds a new section 50 to the tax law establishing
a One Fair Wage Reimbursement Credit." The credit is available to
taxpayers subject to articles 9-A, 22, or 33 of the tax law who pay
wages pursuant to tipped workers at the rates prescribed in section 3 of
this bill. The credit shall be equal to the product of the number of
hours worked by eligible employees multiplied by specified dollar
amounts;
$1.50 for taxable years beginning on or after January 1, 2027 and before
January 1, 2028;
$1.30 for taxable years beginning on or after January 1, 2028 and before
January 1, 2029;
$1.20 for taxable years beginning on or after January 1, 2029 and before
January 1, 2030;
$1.10 for taxable years beginning on or after January 1, 2030 and before
January 1, 2031; and
$1.00 for taxable years beginning on or after January 1, 2031 and before
January 1, 2032.
The credit is reduced if the federal minimum wage exceeds eighty-five
percent of the state minimum wage.
Section 6 of this bill amends Section 210-B of the tax law by adding a
new subdivision 61 to stipulate guidelines on the allowance and applica-
tion of the one fair wage reimbursement credit.
Section 7 amends subparagraph (B) of paragraph 1 of subdivision (i) of
Section 606 of the tax law by adding a new clause (Ili) referencing the
one fair wage reimbursement tax credit.
Section 8 of this bill amends Section 606 of the tax law by adding a new
subsection(uuu) by referencing the allowance and application of the one
fair wage reimbursement credit.
Section 9 of this bill amends Section 1511 of the tax law by adding a
new subdivision(ff) by referencing the allowance and application of the
one fair wage reimbursement credit.
Section 10 of this bill sets forth a severability clause. Section 11 of
this bill provides an effective date.
JUSTIFICATION:
For many years, employers of food service employees have been provided
with a credit that reduces the hourly minimum wage paid to employees
receiving gratuities. These employers now pay $11.35 per hour to work-
ers, so long as workers receive on average the difference between their
reduced minimum wage and the statutory minimum wage in tips, which has
led to a subminimum wage. Allowing for the tip credit has created many
inequities in food service work.
Employees who are not made whole by gratuities face arduous legal proc-
esses to recover their owed wages, involving complicated record-keeping
and inadequate legal remedies. Reliance on tips has also created an
environment where workers are victimized, and in some cases, encouraged
to turn a blind eye, to rampant discrimination and sexual harassment by
clientele and managers. This results in annual restaurant employee sexu-
al harassment claims to the EEOC at five times the rate of other indus-
tries. Eight states (Alaska, California, Maine, Minnesota, Montana,
Nevada, Oregon, and Washington) have eliminated the tipped credit and
required employers to pay the full minimum wage to employees. Those
states have seen growth in the restaurant industry and a more equitable
and experienced workforce. Washington, DC and Portland, Maine have also
passed this via ballot initiative.
New York's two-tiered wage system presents challenges for employers as
well as workers. Unlike many other laws, wage and hour laws put the onus
on employers to keep accurate records and follow the law, which take up
large amounts of time and money in monitoring compliance. Maintaining
the necessary records and compliance of a two-tiered wage system exposes
employers to additional liability.
In short, it is time for New York to join other states and improve the
working conditions in the restaurant industry by eliminating the submin-
imum wage. Employers would not be prohibited from allowing for restau-
rant gratuities, but gratuities would no longer make up the difference
between wages received from the restaurant and the actual minimum wage.
Providing equity and fairness to restaurant workers would help reduce
the wage gap and bring New York in line with many of its sister states
in workers' rights and fairness on the job. This bill puts tipped work-
ers in food service on a path to receive the full minimum wage by 2030.
The bill also updates New York law considering recent changes in federal
Department of Labor regulations on tip sharing. These changes now allow
tip sharing between all employees, including those who work in "back of
house" roles, such as cooks and dishwashers, and those who do not
receive tips. However, this practice is currently barred under New York
State law. This bill will allow tip sharing among all employees to
ensure greater equity in wage earning between front and back of house
employees.
LEGISLATIVE HISTORY:
2024-2025: A.1200A Referred to labor
2023-2024:A.1710A referred to labor
2021-2022: A.10203-referred to Labor
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2027.
STATE OF NEW YORK
________________________________________________________________________
1200--B
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
___________
Introduced by M. of A. GONZALEZ-ROJAS, RAMOS, ANDERSON, BICHOTTE HERME-
LYN, BORES, K. BROWN, BURDICK, R. CARROLL, CLARK, COLTON, CRUZ,
CUNNINGHAM, DAVILA, DeSTEFANO, FALL, FORREST, GALLAGHER, GIBBS, GLICK,
HEVESI, JACKSON, KELLES, KIM, LEE, LEVENBERG, MEEKS, MITAYNES, OTIS,
RAGA, REYES, RIVERA, ROSENTHAL, ROZIC, SEAWRIGHT, SHIMSKY, SHRESTHA,
SIMON, SIMONE, STERN, STIRPE, WEPRIN, VALDEZ, ROMERO, BURROUGHS,
SCHIAVONI, COOK, LAVINE, HOOKS -- read once and referred to the
Committee on Labor -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Labor in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the labor law, in relation to providing for minimum wage
requirements for miscellaneous industry workers; and to amend the tax
law, in relation to establishing the one fair wage reimbursement cred-
it
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 196-d of the labor law, as added by chapter 1007 of
2 the laws of 1968, is amended to read as follows:
3 § 196-d. Gratuities. No employer or [his] their agent or an officer or
4 agent of any corporation, or any other person shall demand or accept,
5 directly or indirectly, any part of the gratuities, received by an
6 employee, or retain any part of a gratuity or of any charge purported to
7 be a gratuity for an employee. This provision shall not apply to the
8 checking of hats, coats or other apparel. Nothing in this subdivision
9 shall be construed as affecting the allowances from the minimum wage for
10 gratuities in the amount determined in accordance with the provisions of
11 article nineteen of this chapter nor as affecting practices in
12 connection with banquets and other special functions where a fixed
13 percentage of the patron's bill is added for gratuities which are
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01382-05-6
A. 1200--B 2
1 distributed to employees, nor to the sharing of tips by a [waiter] serv-
2 er, if the employer takes a credit for gratuities as permitted by subdi-
3 vision two of section six hundred fifty-two of this chapter with a
4 [busboy] busser or similar employee, or, if the employer does not take a
5 credit for gratuities as permitted by subdivision two of section six
6 hundred fifty-two of this chapter, with any other non-managerial and
7 non-supervisory employees.
8 § 2. Section 651 of the labor law is amended by adding a new subdivi-
9 sion 10 to read as follows:
10 10. "Miscellaneous industry worker" means any employee covered by the
11 minimum wage order for miscellaneous industries and occupations pursuant
12 to the provisions of 12 NYCRR part 142, including, but not limited to,
13 car wash attendants, nail salon workers, tow truck drivers, dog groom-
14 ers, wedding planners, tour guides, valet parking attendants, hairdres-
15 sers, aestheticians, golf and tennis instructors, and door-persons.
16 § 3. Subdivisions 2 and 4 of section 652 of the labor law, as amended
17 by section 3 of part S of chapter 56 of the laws of 2023, are amended to
18 read as follows:
19 2. Existing wage orders. The minimum wage orders in effect on the
20 effective date of this act shall remain in full force and effect, except
21 as modified in accordance with the provisions of this article; provided,
22 however, that the minimum wage order for farm workers codified at part
23 one hundred ninety of title twelve of the New York code of rules and
24 regulations in effect on January first, two thousand twenty shall be
25 deemed to be a wage order established and adopted under this article and
26 shall remain in full force and effect except as modified in accordance
27 with the provisions of this article or article nineteen-A of this chap-
28 ter.
29 Such minimum wage orders shall be modified by the commissioner to
30 increase all monetary amounts specified therein in the same proportion
31 as the increase in the hourly minimum wage as provided in subdivisions
32 one, one-a, and one-b of this section, including the amounts specified
33 in such minimum wage orders as allowances for gratuities, and when
34 furnished by the employer to its employees, for meals, lodging, apparel
35 and other such items, services and facilities, except that the hourly
36 cash wage for food service workers, service employees and miscellaneous
37 industry workers who receive tips shall not be less than the cash wage
38 as provided in subdivision four of this section, and the maximum credit
39 for tips in minimum wage orders shall be modified so that such credit,
40 when combined with such cash wage, is equal to the minimum wage, and the
41 hourly cash wage for miscellaneous industry workers shall not be less
42 than the cash wage as provided in subdivision four of this section. All
43 amounts so modified shall be rounded off to the nearest five cents. The
44 modified orders shall be promulgated by the commissioner without a
45 public hearing, and without reference to a wage board, and shall become
46 effective on the effective date of such increases in the minimum wage
47 except as otherwise provided in this subdivision, notwithstanding any
48 other provision of this article.
49 4. [Notwithstanding subdivisions one, one-a, one-b, and two of this
50 section, the wage for an employee who is a food service worker receiving
51 tips shall be a cash wage of at least two-thirds of the minimum wage
52 rates set forth in subdivision one of this section, rounded to the near-
53 est five cents or seven dollars and fifty cents, whichever is higher,
54 provided that the tips of such an employee, when added to such cash
55 wage, are equal to or exceed the minimum wage in effect pursuant to
56 subdivisions one, one-a, and one-b of this section and provided further
A. 1200--B 3
1 that no other cash wage is established pursuant to section six hundred
2 fifty-three of this article] (a) Notwithstanding subdivisions one and
3 two of this section and section six hundred fifty-three of this article,
4 the wage for an employee who is a food service worker or service employ-
5 ee receiving tips and paid pursuant to the provisions of 12 NYCRR part
6 146 shall be, for each hour worked in the city of New York, a cash wage
7 of not less than:
8 $12.77 per hour on and after January 1, 2027;
9 $14.88 per hour on and after January 1, 2028;
10 $17.00 per hour on and after January 1, 2029, and beginning on January
11 first, two thousand thirty, a cash wage rate established by the commis-
12 sioner annually, indexed to inflation as described in subdivision one-b
13 of this section.
14 (b) Notwithstanding subdivisions one and two of this section and
15 section six hundred fifty-three of this article, the wage for an employ-
16 ee who is a food service worker or service employee receiving tips and
17 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each
18 hour worked in the counties of Nassau, Suffolk and Westchester, a cash
19 wage of not less than:
20 $12.77 per hour on and after January 1, 2027;
21 $14.88 per hour on and after January 1, 2028;
22 $17.00 per hour on and after January 1, 2029, and beginning on January
23 first, two thousand thirty, a cash wage rate established by the commis-
24 sioner annually, indexed to inflation as described in subdivision one-b
25 of this section.
26 (c) Notwithstanding subdivisions one and two of this section and
27 section six hundred fifty-three of this article, the wage for an employ-
28 ee who is a food service worker or service employee receiving tips and
29 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each
30 hour worked outside the city of New York and the counties of Nassau,
31 Suffolk and Westchester, a cash wage of not less than:
32 $11.50 per hour on and after January 1, 2027;
33 $13.00 per hour on and after January 1, 2028;
34 $14.50 per hour on and after January 1, 2029;
35 $16.00 per hour on and after January 1, 2030, and beginning on January
36 first, two thousand thirty-one, a cash wage rate established by the
37 commissioner annually, indexed to inflation as described in subdivision
38 one-b of this section.
39 (d) Notwithstanding subdivisions one and two of this section, the wage
40 for an employee who is a miscellaneous industry worker receiving tips
41 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for
42 each hour worked in the city of New York, a cash wage of not less than
43 the cash wage rate as described in paragraph (a) of subdivision one-a of
44 this section.
45 (e) Notwithstanding subdivisions one and two of this section, the wage
46 for an employee who is a miscellaneous industry worker receiving tips
47 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for
48 each hour worked in the counties of Nassau, Suffolk and Westchester, a
49 cash wage of not less than the cash wage rate as described in paragraph
50 (b) of subdivision one-a of this section.
51 (f) Notwithstanding subdivisions one and two of this section, the wage
52 for an employee who is a miscellaneous industry worker receiving tips
53 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for
54 each hour worked outside the city of New York and the counties of
55 Nassau, Suffolk and Westchester, a cash wage of not less than the cash
A. 1200--B 4
1 wage rate as described in paragraph (c) of subdivision one-a of this
2 section.
3 § 4. Subdivision 2 of section 653 of the labor law, as added by chap-
4 ter 14 of the laws of 2000, is amended to read as follows:
5 (2) The commissioner shall, within six months after enactment of any
6 change in the statutory minimum wage set forth in subdivision one of
7 section six hundred fifty-two of this article, appoint a wage board to
8 inquire and report and recommend any changes to wage orders governing
9 wages payable to food service workers. Such wage board shall be estab-
10 lished consistent with the provisions of subdivision one of section six
11 hundred fifty-five of this article, except the representatives of the
12 employees shall be selected upon the nomination of the state American
13 Federation of Labor/Congress of Industrial Organizations; and provided,
14 further, that the representatives of the employers shall be selected
15 upon the nomination of the New York State Business Council. [Any wage
16 order authorizing a lesser wage than the previously and statutorily
17 mandated minimum wage for such employees shall be reviewed by the wage
18 board to ascertain at what level such wage order is sufficient to
19 provide adequate maintenance and to protect the health and livelihood of
20 employees subject to such a wage order after a statutory increase in the
21 mandated minimum wage] Notwithstanding section six hundred fifty-five of
22 this article, a wage order under this subdivision shall not authorize a
23 lesser wage than the previously and statutorily mandated minimum wage
24 for such employees.
25 § 5. The tax law is amended by adding a new section 50 to read as
26 follows:
27 § 50. One fair wage reimbursement credit. (a) Allowance of credit. A
28 taxpayer subject to tax under article nine-A, twenty-two, or thirty-
29 three of this chapter who is an eligible employer, as defined in subdi-
30 vision (b) of this section, shall be allowed a credit against such tax
31 to be computed as provided in subdivision (d) of this section.
32 (b) Definitions. As used in this section:
33 (1) "Eligible employer" means an employer who is required to pay wages
34 at the rates established pursuant to subdivision four of section six
35 hundred fifty-two of the labor law.
36 (2) "Eligible employee" means an employee whose wages are set pursuant
37 to subdivision four of section six hundred fifty-two of the labor law,
38 and for whom the employer maintains records of hours worked at such wage
39 rate.
40 (3) "Qualified hours" means the total number of hours worked by eligi-
41 ble employees during the taxable year for which such employees were paid
42 at the applicable minimum cash wage rate established pursuant to subdi-
43 vision four of section six hundred fifty-two of the labor law.
44 (4) "Certificate of advance payment" means a certificate issued pursu-
45 ant to subdivision three of this section.
46 (c) Advance payment of credit. (1) An eligible employer may apply to
47 the commissioner for an advance payment of the credit for the portion of
48 the taxable year beginning January first and ending July thirty-first.
49 (2) The commissioner, in consultation with the commissioner of labor,
50 shall issue a certificate of advance payment to eligible employers. Such
51 certificate shall include a certificate number and the maximum advance
52 amount for which the employer is eligible.
53 (3) Any advance payment received by a taxpayer who is subsequently
54 determined not to be eligible for the credit shall be added back to the
55 taxpayer's tax for such taxable year.
A. 1200--B 5
1 (4) The commissioner shall establish application procedures, documen-
2 tation standards, and timelines for issuance of advance payments.
3 (d) Amount of credit. (1) For taxable years beginning on or after
4 January first, two thousand twenty-seven, the credit shall be equal to
5 the product of the taxpayer's qualified hours and the applicable dollar
6 amount specified in subparagraphs (i) through (v) of paragraph two of
7 this subdivision.
8 (2) The applicable dollar amounts shall be:
9 (i) one dollar and fifty cents for taxable years beginning on or after
10 January first, two thousand twenty-seven and before January first, two
11 thousand twenty-eight;
12 (ii) one dollar and thirty cents for taxable years beginning on or
13 after January first, two thousand twenty-eight and before January first,
14 two thousand twenty-nine;
15 (iii) one dollar and twenty cents for taxable years beginning on or
16 after January first, two thousand twenty-nine and before January first,
17 two thousand thirty;
18 (iv) one dollar and ten cents for taxable years beginning on or after
19 January first, two thousand thirty and before January first, two thou-
20 sand thirty-one; and
21 (v) one dollar for taxable years beginning on or after January first,
22 two thousand thirty-one and before January first, two thousand thirty-
23 two.
24 (3) If the federal minimum wage is increased above eighty-five percent
25 of the minimum wage rate as defined in subdivision four of section six
26 hundred fifty-two of the labor law, the dollar amounts in this subdivi-
27 sion shall be reduced to the difference between the minimum wage rate as
28 defined in subdivision four of section six hundred fifty-two of the
29 labor law and the federal minimum wage. Such reduction shall take effect
30 on the date that employers are required to pay such federal minimum
31 wage.
32 (e) S-corporation treatment. A New York S-corporation shall compute
33 the credit allowed by this section, but may not apply such credit
34 against the tax imposed on the corporation. Instead, the S-corporation
35 shall pass the credit through to its shareholders in proportion to their
36 pro rata shares, to be applied against the tax imposed by article twen-
37 ty-two of this chapter.
38 (f) Recordkeeping and required attachment. A taxpayer claiming the
39 credit under this section shall file, in such form as the commissioner
40 may prescribe, a schedule listing each eligible employee, including: (1)
41 the employee's name or identifying number; (2) location where the
42 employee performed work; (3) total qualified hours for the taxable year;
43 and (4) the wage rate at which such hours were paid. Failure to file the
44 required schedule shall result in the denial of the credit.
45 (g) Restrictions. (1) The credit allowed under this section may not
46 reduce the tax due for any taxable year to less than the fixed dollar
47 minimum tax under article nine-A of this chapter or the minimum tax
48 under article thirty-three of this chapter.
49 (2) The credit shall not be applied against the metropolitan transpor-
50 tation business tax surcharge.
51 (3) No employer may claim the credit for any employee for whom the
52 employer claims another credit under this chapter, unless expressly
53 permitted by the commissioner.
54 (h) Refundability. If the amount of credit allowable under this
55 section exceeds the taxpayer's tax for such year, the excess shall be
A. 1200--B 6
1 treated as an overpayment to be refunded or credited to the succeeding
2 taxable year; provided, however, no interest shall be paid thereon.
3 (i) Regulations. The commissioner shall promulgate rules and regu-
4 lations necessary to implement the provisions of this section, including
5 procedures for verification, documentation, advance payments, and the
6 method of determining qualified hours.
7 (j) Cross-references. For application of the credit provided for in
8 this section, see the following provisions of this chapter:
9 (1) article 9-A: section 210-B, subdivision 63;
10 (2) article 22: section 606, subsections (i) and (uuu);
11 (3) article 33: section 1511, subdivision (ff).
12 § 6. Section 210-B of the tax law is amended by adding a new subdivi-
13 sion 63 to read as follows:
14 63. One fair wage reimbursement credit. (a) Allowance of credit. A
15 taxpayer shall be allowed a credit, to be computed as provided in
16 section fifty of this chapter, against the tax imposed by this article.
17 (b) Application of credit. The credit allowed under this subdivision
18 for any taxable year may not reduce the tax due for such year to less
19 than the amount prescribed in paragraph (d) of subdivision one of
20 section two hundred ten of this article. However, if the amount of the
21 credit allowed under this subdivision for any taxable year reduces the
22 tax to such amount or if the taxpayer otherwise pays tax based on the
23 fixed dollar minimum amount, any amount of credit thus not deductible in
24 such taxable year will be treated as an overpayment of tax to be credit-
25 ed or refunded in accordance with the provisions of section one thousand
26 eighty-six of this chapter. Provided, however, the provisions of
27 subsection (c) of section one thousand eighty-eight of this chapter
28 notwithstanding, no interest shall be paid thereon.
29 § 7. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
30 of the tax law is amended by adding a new clause (liii) to read as
31 follows:
32 (liii) One fair wage Amount of credit under
33 reimbursement credit subdivision sixty-three of
34 under subsection (uuu) section two hundred ten-B
35 § 8. Section 606 of the tax law is amended by adding a new subsection
36 (uuu) to read as follows:
37 (uuu) One fair wage reimbursement credit. (1) Allowance of credit. A
38 taxpayer shall be allowed a credit, to be computed as provided in
39 section fifty of this chapter, against the tax imposed by this article.
40 (2) Application of credit. If the amount of the credit allowed under
41 this subsection for any taxable year exceeds the taxpayer's tax for such
42 year, the excess will be treated as an overpayment of tax to be credited
43 or refunded in accordance with the provisions of section six hundred
44 eighty-six of this article, provided, however, that no interest will be
45 paid thereon.
46 § 9. Section 1511 of the tax law is amended by adding a new subdivi-
47 sion (ff) to read as follows:
48 (ff) One fair wage reimbursement credit. (1) Allowance of credit. A
49 taxpayer shall be allowed a credit, to be computed as provided in
50 section fifty of this chapter, against the tax imposed by this article.
51 (2) Application of credit. The credit allowed under this subdivision
52 shall not reduce the tax due for such year to be less than the minimum
53 fixed by paragraph four of subdivision (a) of section fifteen hundred
54 two or section fifteen hundred two-a of this article, whichever is
A. 1200--B 7
1 applicable. However, if the amount of the credit allowed under this
2 subdivision for any taxable year reduces the taxpayer's tax to such
3 amount, any amount of credit thus not deductible will be treated as an
4 overpayment of tax to be credited or refunded in accordance with the
5 provisions of section one thousand eighty-six of this chapter. Provided,
6 however, the provisions of subsection (c) of section one thousand eight-
7 y-eight of this chapter notwithstanding, no interest shall be paid ther-
8 eon.
9 § 10. Severability clause. If any clause, sentence, paragraph, subdi-
10 vision, section or part of this act shall be adjudged by any court of
11 competent jurisdiction to be invalid, such judgment shall not affect,
12 impair, or invalidate the remainder of this act, but shall be confined
13 in its operation to the clause, sentence, paragraph, subdivision,
14 section or part of this act directly involved in the controversy in
15 which such judgment shall have been rendered. It is hereby declared to
16 be the intent of the legislature that this act would have been enacted
17 even if such invalid clause, sentence, paragraph, subdivision, section
18 or part of this act had not been included herein.
19 § 11. This act shall take effect immediately and shall apply to taxa-
20 ble years beginning on and after January 1, 2027.
