Governor Hochul Proposes Expansion of New York’s Child Tax Credit
The plan, aimed at easing the financial burden on families, would provide annual tax credits of up to $1,000 per child under four years old and up to $500 per child aged four through sixteen.
Governor Kathy Hochul has proposed the largest expansion of the state's child tax credit in history. This plan, aimed at easing the financial burden on families, would provide annual tax credits of up to $1,000 per child under four years old and up to $500 per child aged four through sixteen. The proposal is expected to benefit over 2.75 million children and deliver substantial financial relief to more than 1.6 million families statewide.
Key Highlights of the Proposal
Increased Benefits: The expanded credit triples the amount for children under four and doubles the average benefit for all families, raising it from $472 to $943.
Broader Income Eligibility: Families earning up to $200,000 or more would be eligible for partial benefits. For example, a family of four with an income of $170,000 would receive over $500, compared to receiving no credit under the current system.
Phased Implementation: The $1,000 credit for children under four begins in the 2025 tax year, while the $500 credit for older children starts in 2026.
Governor Hochul emphasized the importance of the expanded credit in tackling child poverty. With this initiative, child poverty in New York State is projected to decrease by 8.2%. When combined with other measures, including expanded subsidized childcare, child poverty reduction is expected to reach 17.7%.
"From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too high," Governor Hochul stated. "This expansion will put more money in the pockets of hardworking families and help ensure a brighter future for New York's children."
The proposed expansion of the Child Tax Credit is proposed to bring significant financial relief to families in the Finger Lakes region, benefiting approximately 104,000 households and 180,000 children. By increasing the credit amount and expanding eligibility, Governor Hochul’s initiative aims to alleviate the financial pressures of raising children, addressing the rising costs of essentials like childcare, food, and clothing. This targeted support would help improve the economic stability of families in the Finger Lakes, contributing to a stronger, more equitable community.
This proposal builds on Governor Hochul’s prior initiatives, such as expanding the child tax credit in 2023 to cover over 600,000 previously excluded children under four. It also complements her plan to issue $500 Inflation Refund checks to help families cope with rising living costs.
Barbara C. Guinn, Commissioner of the Office of Temporary and Disability Assistance, highlighted the broader impact: "This expansion is a critical step toward reducing child poverty and improving outcomes for children and families across the state."