Gov. Kathy Hochul on Monday proposed an expansion of New York’s child tax credit for more than 2.75 million children.
According to a news release from hewr office, Hochul’s plan would give 1.6 million New York families an annual tax credit of up to $1,000 per child under age 4 and up to $500 per child from 4 through 16. The proposal represents the largest boost to New York’s child tax credit in its history, and a significant increase above the value of the existing credit, which currently provides up to $330 per child.
“From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too damn high — and that’s why we’re proposing a massive increase in New York’s child tax credit to put up to $1,000 per kid back in the pockets of hardworking families,” Hochul said. “As New York’s first mom governor, I know how hard it can be for parents to make ends meet — and I’ll never stop fighting to make New York more affordable for every family.”
Hochul’s proposed expansion of New York’s child tax credit “will drive significant assistance to families with the youngest children and help families across the income spectrum,” the release stated. The average credit given out to families will double from $472 to $943. “It will be instrumental in helping to address child poverty in New York State — and will also deliver relief to many middle-class families whose incomes are currently too high to qualify for the credit,” according to the release.
For example, under the proposal, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program.
Additionally, while the full credit is available to jointly filing households up to $110,000, the expanded credit combined with its gradual rate of phaseout means even a family of four with household income of $170,000 would receive more than $500 per year. That family would not have qualified for any credit under the current program.
“This proposed expansion will put money back in the pockets of around 1.6 million families overall statewide and lift up the financial fortunes of over 2.75 million children,” the release stated.
The credit would be phased in over two years, with households with children younger than 4 eligible for their $1,000 credit for the 2025 tax year and those with children older than four eligible for the $500 credit for the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.
When fully implemented, it is estimated that the initiative could reduce poverty among children statewide by 8.2%, and when combined with other measures already advanced by Hochul, including expanding subsidized child care, will see child poverty reduced by 17.7%, according to the release.