On January 6th, 2025, Governor Kathy Hochul announced a proposal to expand New York’s Empire State Child Credit. Her recommendation addresses some of the most harmful structural flaws that have limited the effectiveness of the state’s child tax credit since it was first introduced in 2006. If passed, this proposal would:

• Remove the income level phase-in, ensuring all families with low income can access the full credit amount,
• Increase the credit amount to $1,000 for children under age 4, acknowledging the higher costs associated with raising young children, and
• Increase the credit amount to $500 for children ages 4 through 16, better reflecting today’s costs than the previous $330 credit.

Currently, this expansion would be rolled out over two years, with the phase-in elimination and young child increase happening in the 2025 tax year, and the higher credit for older children delayed until the following year. To have the greatest impact, policymakers should consider modifying this proposal to allow for full implementation in year one.

Use this quick calculator to compare your family’s current tax benefits with the expanded benefits proposed by Governor Hochul.

Note: The calculator is an estimate. Your actual tax credit may be different based on the details of your income and changes that could be made when the bill is enacted into law.