Minimum wage reimbursement credit
You may be entitled to this refundable credit if you:
- employ students in New York State for tax years beginning on or after January 1, 2014, and before January 1, 2019, who are least 16 but not yet 20 years of age and are paid at the New York minimum wage rate.
How much is the credit?
- The credit is equal to the total number of hours worked by eligible employees during the taxable year for which they are paid the New York minimum wage, multiplied by the applicable tax credit rate for that year, as follows:
|Tax years||Tax credit rate|
|Tax years beginning on or after January 1, 2014, and before January 1, 2015||$0.75|
|Tax years beginning on or after January 1, 2015, and before January 1, 2016||$1.31|
|Tax years beginning on or after January 1, 2016, and before January 1, 2019||$1.35|
Verification of student status for purposes of the credit
You must obtain documentation to verify that the individual is currently enrolled as a student at an eligible educational institution. You must retain a copy of the student's documentation for your records and make it available to the Tax Department upon request. Examples of acceptable documentation include:
- a student's identification card,
- a student's current or future course schedule issued by the school,
- a letter from the student's school verifying his or her current or future enrollment, or
- working papers (New York State Department of Labor Student General Employment Certificate - AT‑19).
Note: Individuals who have been issued a New York State Department of Labor Full‑Time Employment Certificate - AT‑20, are not attending school and are therefore are not eligible employees.
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Minimum wage reimbursement tax credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
For additional information on claiming this credit, see:
- Form CT-639, Minimum Wage Reimbursement Credit, and its instructions, Form CT-639-I (for corporations), or
- Form IT-639, Minimum Wage Reimbursement Credit, and its instructions, Form IT-639-I (for all others), and
- TSB-M-13(8)C, (7)I, Minimum Wage Reimbursement Credit.