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By: Benyamin Davidsons
On Monday, Gov. Kathy Hochul proposed to expand New York State’s child tax credit to more than double what some families receive. As reported by the NY Times, the plan would give eligible families a tax credit of up to $1,000 per child under the age of 4.
For each child between the ages of 4 to 16 families would be qualified to receive up to a $500 tax break. Currently, the state offers a max of $330 per child, and it’s just for the poorest NY families. The new proposal will be highlighted in the governor’s State of the State address to take place next week, with a push to have it included in her executive budget.
During a news conference on Monday, Ms. Hochul said that she is pushing the child tax credit proposal because she saw while raising her own children how the financial strain can affect households. “I will continue doing this,” she said. “I’ll do it independent of elections. It’s the right thing to do.” Gov Hochul added, “People are hurting right now, and we cannot be tone deaf as a party, as a nation or as a state to those cries for help. This is how to respond to them.”
The plan aims to address the state’s affordability crisis. In the 2024 elections, NY Democrats feel they lost to Republican due to voters’ frustration regarding the high cost of living. In light of this, both Gov. Hochul and New York City Mayor Eric Adams have already announced other tax cuts or refunds which they want the Legislature to implement in 2025, per the Times. In December, Gov. Hochul had announced that she wants to spend roughly $3 billion from sales tax revenue, to send inflation refund checks of between $300 and $500 to some 8.6 million New Yorkers. For his part, Mayor Adams has proposed nixing NYC income taxes for over 400,000 of the lowest-earning residents. These plans still need to gain legislative approval.
Per the NY Times report, Ms. Hochul’s child credit plan would affect over 2.75 million children in NYS, or 1.6 million families. Families earning up to $200,000 a year would be eligible for the tax credit. In a news release, Ms. Hochul’s team noted that the proposal would double the average credit for families—bringing the average close to $950 per family. If the plan is enacted, it would be among the most generous child tax credits in the country, as per researchers at the Center on Poverty and Social Policy at Columbia University. Only 15 states aside from NY had some form of child credit in 2023. The state credits are in addition to the federal child tax credit.
NYS legislators, some of whom have previously suggested similar proposals, expressed support for the plan. “We are very glad the governor is supporting these important tax credits, which we have long championed in the Assembly majority,” said Mike Whyland, a spokesman for Assembly Speaker Carl E. Heastie.
“I know firsthand how expensive raising children has become in this great state,” said State Senator Andrea Stewart-Cousins, the majority leader. “We look forward to discussing this proposal further. But we also know we have to deal with the rising cost of child care. The cost of child care is a burden that can overwhelm families, and we need to take steps to make affordable child care available to all New Yorkers.”
