Often, major legislation discussed in Springfield makes media headlines and creates social media buzz. However, often legislation can serve our business community in a significant way yet go virtually unnoticed. One such piece of legislation is the minimum wage tax credit offered to businesses and not-for-profits with 50 or less full-time equivalent employees.
This tax credit was initially established to off-set the incremental increases in the minimum wage which was passed in 2019. In the original bill, a tax credit was set at 25% in 2020, decreased to 21% in 2021 then incrementally tapering to 5% by 2025. This credit would end entirely in 2026 for employers with greater than five employees and in 2027 for employers with less than five employees.