Gov. Hochul is proposing a major expansion of New York’s child tax credit of up to $1,000 per child, she announced Monday.
The plan, one of several the governor plans to set forth during her annual State of the State address next week, would give eligible households with children under the age of 4 a $1,000 credit for the 2025 tax year, and those with children between ages 4 and 16 a $500 credit the following year.
Currently, the state’s child tax credit provides up to $330 per child.
“Raising a family is harder than it’s ever been before,” said Hochul at Vanderbilt YMCA in Midtown East. “Everything is up.”
“I want to support families, especially in those earliest years when you’re not getting enough sleep at night. I know that. You’re stressed out. But family by family, child by child, community by community, we will make this place better and more livable and more affordable.”
The benefit would be expanded to families earning up to $200,000 or more, according to a press release. It’s expected to reach 1.2 million children in New York City alone.
According to governor’s office estimates, the program could reduce child poverty statewide by 8.2% when fully implemented.
Hochul’s plan is one of several competing proposals on the state and federal levels.
In a statement following Hochul’s announcement, State Sen. Andrew Gounardes plugged his own “Working Families Tax Credit,” which would raise the maximum tax credit to $1,600 per child and pin the credit to inflation as quarterly payments, as the best way to reduce child poverty and support parents.
The announcement comes as the issue of affordability has taken front and center for New York politicians in the aftermath of the presidential election. For her first press conference of the year, Hochul — who is expected to face formidable challengers during the gubernatorial race next year — touted a series of new policies taking effect to “put money back into the pockets of New Yorkers.”
Hochul is scheduled to deliver the 2025 State of the State speech on Tuesday, Jan. 14 at Hart Theater at The Egg in Albany.
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