SB 1213 Summary

• Creates a tax credit for taxable years beginning after December 31, 2024, allowing employers to claim 5% of increased hourly labor costs resulting from paying a local minimum wage higher than the state minimum wage.

• Employers must certify actual hourly labor costs paid and total employee hours multiplied by the state minimum wage to qualify for the credit under sections 43-1079 (individual income tax) and 43-1166 (corporate income tax).

• Limits combined tax credits under both sections to $5,000,000 per city or town per calendar year, distributed on a first-come, first-served basis, with unused credits allowed to carry forward up to five consecutive taxable years.

• Requires the Department of Revenue to notify the State Treasurer of cities and towns where credit claimants' employees work so that the Treasurer can withhold corresponding amounts from those cities' and towns' urban revenue sharing distributions to reimburse the state.

• Adds sections 43-1079 and 43-1166 to the income tax credit review schedule for years ending in 3 and 8, and amends section 43-206 to establish the withholding mechanism from urban revenue sharing funds.