Gov. Hochul proposes expanding child tax credit up to $1,000 per child

ALBANY — New York Gov. Kathy Hochul on Monday proposed increasing the state’s child tax credit, giving families up to $1,000 per child under the age of 4 and $500 per child from ages 4 to 16.

The expansion, which is part of Hochul’s 2025 budget proposal, would be phased in over two years and cover more than 2.75 million children, including an estimated 215,000 households on Long Island, according to a news release following the announcement.

The proposed expansion aims to decrease stress on families and lift more children out of poverty, Hochul said. "More money back in people’s pockets, that’s what we’re going to do in a lot of different ways," she said announcing the proposal in Manhattan.

"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," Hochul said.

The effort comes as Hochul and state lawmakers look to make New York more affordable, an issue that was key in the congressional and presidential elections last November.

The current tax credit, known as the Empire State Child Credit, is based on income level and provides up to $330 per child.

Those qualifying for the full credit include couples filing jointly earning $110,000 or less, couples filing separately earning $55,000 or less, and single filers earning $75,000 or less, according to the governor’s office and state Department of Taxation and Finance website. Families earning more may still qualify, but the credit they receive gradually decreases as income levels increase. 

The credit is refundable, meaning it can either offset taxes or be paid out directly to taxpayers as a refund.

Under the expanded tax credit, families with children under 4 years old would be eligible for the $1,000 credit for the 2025 tax year, and those with children over 4 would be eligible for the 2026 tax year.

A family of four with a toddler and school-age child and a household income of up to $110,000, for example, would receive a credit of $1,500 per year, according to the news release.

The expanded rate also would allow families earning up to $200,000 to receive a credit, the release said. A family of four with a household income of $170,000, for example,  would receive a credit of more than $500 per year,  which they would not otherwise qualify for under the current program, according to the release.

Additional details on the expanded credit are expected to be included in the governor’s budget proposal in January.

Poverty and child advocacy groups applauded the proposal.

"We know that tax credits for families with children are a particularly powerful investment," said Richard Buery, Jr., CEO of the Robin Hood, an advocacy group based in New York City that fights poverty.

"When the federal child tax credit was temporarily expanded during the pandemic we saw childhood poverty plunge to historic lows," Buery said Monday at the Manhattan event, adding that when the federal expansion expired, local poverty rates reached a 10-year high.

The credit also helps parents, he said. 

"When you have a little bit more money in your pocket as a parent, you are less stressed, you can be more present, you can be a much better and more effective parent to your children," Buery said.