New York to Expand Child Tax Credit: Families Could Receive Up to $1,000 per Child

In a groundbreaking move, Governor Kathy Hochul has unveiled a new proposal to expand New York’s child tax credit, potentially putting more money in the pockets of thousands of families with children across the state. The proposal aims to provide an annual tax credit of up to $1,000 per child under the age of 4 and up to $500 per child between the ages of 4 and 16. This development represents the most substantial increase to New York’s child tax credit in history, significantly surpassing the current credit value of up to $330 per child, as confirmed by officials.

Gov. Hochul’s Vision for New York Families

In a bold statement, Governor Hochul emphasized the pressing need to alleviate financial burdens on families, highlighting the rising costs of essentials such as groceries, strollers, and children’s clothing. She expressed her commitment to enhancing the affordability of living and raising a family in New York by proposing a substantial increase in the child tax credit. As the first mother to hold the position of governor in New York, Hochul empathizes with the challenges faced by parents in making ends meet and vows to advocate for every family’s financial well-being.

Impact of the Proposed Expansion

The proposed expansion of New York’s child tax credit is poised to provide significant support to families with young children while benefiting households across various income brackets. On average, families stand to see their credits double from $472 to $943, offering a considerable financial boost. For instance, a family of four with a toddler and a school-age child and a household income of up to $110,000 could receive a credit of $1,500 per year under the expanded program, translating to almost $1,000 more annually than under the current system.

Projected Statewide Assistance

The impact of the proposed expansion is far-reaching, with an estimated 1.6 million families expected to benefit across different regions of New York. The distribution of the households and children benefiting from the expanded child tax credit is as follows:

| Region | Estimated Households Benefiting | Estimated Children Benefiting |
|—————–|———————————|——————————-|
| New York City | 740,000 | 1.2 Million |
| Long Island | 215,000 | 355,000 |
| Mid-Hudson | 180,000 | 330,000 |
| Western New York| 118,000 | 207,000 |
| Finger Lakes | 104,000 | 180,000 |
| Capital Region | 86,000 | 145,000 |
| Central New York| 67,000 | 116,000 |
| Southern Tier | 51,000 | 89,000 |
| Mohawk Valley | 43,500 | 76,500 |
| North Country | 35,000 | 61,000 |

Phased Implementation and Timeline

The expanded child tax credit will be rolled out over a two-year period. Families with children under the age of 4 will be eligible for the $1,000 credit starting from the 2025 tax year, while those with children over four will qualify for the $500 credit beginning in the 2026 tax year. The Empire State Child Credit is a refundable credit, offering families the flexibility to offset taxes or receive a refund directly.

With the prospect of increased financial relief for families in New York, the proposed expansion of the child tax credit signifies a significant step towards enhancing the well-being and financial security of households statewide. As Governor Hochul’s vision comes to fruition, families across the state can look forward to a brighter and more sustainable future for their children.