Gov. Kathy Hochul is proposing a major expansion of New York’s child tax credit as part of her 2025 executive agenda, the governor announced Monday.
Under her proposal, families would receive up to $1,000 in credits annually for each child under age 4 and up to $500 for each child between ages 4 and 16. The current fee is set at $330 per child.
Households with annual incomes up to $170,000 are eligible for the credit.
“This is the largest expansion of the child tax credit in state history,” Hochul said at an event in New York City.
The state estimates the expansion could help more than 2.75 million children.
“Two years’ worth of diapers, a year’s worth of milk, or two months’ worth of groceries, at least a few months’ worth of groceries. So it’s important to give parents peace of mind so they don’t feel so stressed out. That’s what we’re trying to do here,” Hochul said.
Child care has become a salient issue, especially during the COVID-19 pandemic as federal funding expanded and child poverty rates fell to historic lows. The rate rose again as federal aid ended during the pandemic.
“This decision to triple the size of this tax credit has the power to lift us out of poverty, uplift families and continue the trajectory we are on,” Hochul said.
Mr. Hochul is scheduled to explain his administrative proposals next Tuesday at his annual State of the State address in Albany.
