Governor Kathy Hochul Proposes Massive Increase to New York’s Child Tax Credit
Albany, N.Y. (NEXSTAR) — Governor Kathy Hochul has proposed expanding the Empire State Child Tax Credit, which would provide as much as $1,000 per child up to age 3, and $500 for kids aged 4 and 16.
Increased Benefits for Middle-Class Families
The new plan aims to help middle-class families who couldn’t qualify for the current credit due to their income. Under the proposed system, a family of four making up to $170,000 would still receive over $500, which they wouldn’t have qualified for before.
How the New Plan Works
- Families with kids under 4 would receive their full $1,000 in 2025
- The $500 for those with older children (4-16) would start in 2026
- Households with incomes up to $110,000 would receive the full $1,000 for younger children and $500 for older children
- The benefit would gradually decrease until the $170,000 threshold
Benefits for Struggling Families
The expanded credit would improve the health and academic performance of children, benefiting struggling families. Governor Hochul stated that increasing the credit would impact the entire state, supporting over 2.75 million children in thousands of households in each region.
Regional Breakdown
| Region | Households | Children |
|---|---|---|
| New York City | 740,000 | 1,200,000 |
| 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 |
Implementation and Cost
The Governor’s office did not announce a new price tag associated with implementing the new benefit amount. In December, the Child Poverty Reduction Advisory Council proposed doubling the Empire State Child Tax Credit as part of a suite of reforms costing up to $9 billion.
Conclusion
Governor Kathy Hochul’s proposal to expand the Empire State Child Tax Credit would provide significant support to struggling families, helping to reduce child poverty. The expanded credit would also benefit middle-class families who couldn’t qualify for the current credit due to their income.
Frequently Asked Questions
Q: What is the new Empire State Child Tax Credit?
A: The new credit would provide as much as $1,000 per child up to age 3, and $500 for kids aged 4-16.
Q: Who would benefit from the new credit?
A: Over 1.6 million families in New York would benefit, including middle-class families who couldn’t qualify for the current credit.
Q: When would the new credit take effect?
A: The full $1,000 for younger children would take effect in 2025, while the $500 for older children would start in 2026.
Q: What is the current child tax credit?
A: The current credit tops out at $330 per child.
