In a major step toward supporting working families, New York has introduced a groundbreaking expansion of its Child Tax Credit program.
As part of Governor Kathy Hochul’s 2025 state budget, the plan will provide families with up to $1,000 per child under the age of four, and $500 for each child between ages four and sixteen.
This marks the largest increase in the state’s child tax benefits in history, aiming to relieve financial pressures on low- and middle-income households. It’s a clear signal that the state is prioritizing the well-being of young children and working parents, especially as the cost of living continues to rise.
A Targeted Boost for Early Childhood
Governor Hochul’s administration emphasized that the increased benefit for children under four is designed to address the high costs of childcare and early development. These early years are critical for a child’s growth, and the rebate is expected to help parents afford essentials like daycare, food, diapers, and healthcare.
Who Qualifies?
Families who are currently eligible for New York’s existing Empire State Child Tax Credit will automatically benefit from the expansion. This includes households that meet income guidelines and have qualifying children under the age of 17.
Children under 4 years old = $1,000 tax credit per child
Children aged 4 to 16 = $500 tax credit per child
These payments are refundable, meaning families can receive the money even if they don’t owe any state taxes.
Economic Impact
The expanded credit is not only a win for families—it’s also seen as a strategy to reduce child poverty and stimulate the state’s economy. By giving families more money to spend on essentials, the policy is expected to generate more activity in local economies, while also giving kids a stronger foundation for success.
A Model for Other States?
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New York’s move follows a national trend of states stepping in to expand family tax benefits after the expiration of the federal enhanced child tax credit. With this change, New York is joining the ranks of a few leading states that are creating or improving their own versions of child-focused tax relief.
What’s Next?
The expanded benefits will begin with the 2025 tax year, meaning families will see the new credit amounts when they file their state taxes in early 2026. In the meantime, outreach efforts will help ensure eligible families are aware of the credit and how to claim it.
Bottom Line:
New York is putting its money where its values are—investing in children, reducing family financial strain, and setting a bold example for the rest of the nation.
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