(The Center Square) — New York Gov. Kathy Hochul is pledging to dramatically expand child tax credits this year as part of a broader effort to make the state more affordable.
Hochul will use her State of the State address next week to highlight the new proposal, which calls for giving eligible families a tax credit of up to $1,000 per child under the age of four. Families would receive up to a $500 tax break per child, up to the age of 16, according to the Hochul administration.
Hochul said the plan, which would triple the tax credit for babies and toddlers, would be the largest boost to New York’s child tax credit, which currently provides only up to $330 per child. She said the proposed changes are aimed at making child care more affordable in a state with some of the highest costs in the nation.
“Right now, some of the poorest families are excluded from this tax credit, and I don’t want that to happen anymore,” Hochul said in her remarks. “We’re putting an end to that. We’re making it easier to get access to this and extend full eligibility to every single family who needs our help. Let’s get that done.”
The proposal would impact more than 2.75 million children in the state and families earning up to $200,000 a year would be eligible for the credit, according to the Hochul administration.
In another plan, Hochul said she plans to request lawmakers’ approval to create a new $110 million Child Care Construction Fund to build new child care facilities and repair existing sites. As part of that plan, Hochul said she will also propose a “substitute pool” to expand the child care workforce, “helping providers find trusted, vetted professionals to quickly step in and keep classrooms open.”
Hochul also plans to ask the state Legislature to approve a proposal to distribute $3 billion in direct “inflation reduction” checks to 8.6 million taxpayers. Funding for the plan would come from excess sales tax collections, which Hochul says have exceeded historical averages.
Under the plan, single taxpayers who make up to $150,000 per year would receive a one-time payment of $300, while joint tax filers making up to $300,000 per year would get a payment of $500, according to the Hochul administration. The administration said the payments would go out next fall.
“So the message is this: New York families, we hear you,” she said. “We know the struggles, we know what you’re going through, and we’re going to do everything in our power to deliver policies, programs and financial support to help you get through these tough times.”
Hochul is scheduled to deliver her State of the State address on Jan. 14 in the Assembly chamber in Albany, when she will provide more details of her proposals.