Gov. Kathy Hochul, D-NY, on Monday revealed a new proposal that would expand the state's child tax credit and give families with children more than twice what they are currently receiving.
Under the new proposal, which she announced during a Midtown press conference, families with children aged four and up can get as much as $1,000 per child. Families with children between the ages of four and 16 would also be eligible to receive up to $500 in child tax credit.
Should the proposal be signed into law, it would increase the amount of child tax credit received by New York families from the current $330 per child. The state estimates the proposal would increase the average credit given out to families from $472 to $943, per the press release.
How Would Hochul's Proposed Child Tax Credit Work?
The expanded child tax credit would be phased over a two-year period. Families with children under four would receive their $1,000 credit in the 2025 tax year, while families with children between the ages of four and 16 would receive the $500 credit for the 2026 tax year.
The new child tax credit is refundable and can either be used to offset taxes or paid out directly to taxpayers as a refund.
The proposed expansion is expected to put money into the pockets of 1.6 million families and reduce child poverty in the state by 17.7% when combined with other measures, such as expanding subsidized child care.
"From groceries to strollers to kids' clothes, the cost of living and raising a family is still too damn high — and that's why we're proposing a massive increase in New York's child tax credit to put up to $1,000 per kid back in the pockets of hardworking families," Gov. Hochul said.
What Is the Reason Behind the Proposal?
Gov. Hochul's proposal aims to address the high cost of living in New York. The expanded child tax credit follows a December proposal where she suggested sending $3 billion in inflation refund checks to 8.6 million taxpayers in the state. Specifically, residents filing jointly and making less than $300,000 would be given $500 checks, while individuals earning up to $150,000 would get $300.
Mayor Eric Adams of New York City also previously proposed to eliminate income taxes for over 400,000 of the lowest-wage earners in the city.
