Both the NYS Assembly and NYS Senate one-house budgets include proposals to significantly expand and strengthen New York’s state tax credits for children and families.
These bills reflect pieces of the Working Families Tax Credit (WFTC), which builds upon robust evidence showing that providing cash transfers to families, including through refundable tax credits, leads to significant reductions in poverty, particularly child poverty.
Robust child tax credits are key to reducing New York’s high child poverty rates statewide.
According to a recent study from The Children’s Agenda:
- The Working Families Tax Credit will keep more money in the pockets of parents, allowing them to invest their resources in their children.
- It will provide critical support to families that need it the most by eliminating the exclusion of very low-income families with children from receiving the maximum credit.
- The phase-out will be less steep than existing tax policy, preventing a cliff where families are suddenly ineligible or see substantially reduced benefits.
- Indexing the credit to inflation will ensure the credit maintains its value over time.
With the enactment of the Child Poverty Reduction Act, New York State committed to cutting child poverty rates in half by 2033. Robust tax relief for New York’s families, especially those earning the lowest incomes, is among the most effective and equitable ways for New York State to fulfill this commitment and support family economic security.
To make New York more affordable for all families, and fulfill the State’s child poverty reduction goals, this year’s enacted state budget must expand and strengthen its tax credits for families.
Additional Resources on Child & Family Tax Credits
- Tax Credits to Help Families Make Ends Meet – Schuyler Center one-pager
- Give Families Credit: Making NY Tax Policy Work for Families – The Children’s Agenda report
- Fact Sheet: Working Families Tax Credit – The Children’s Agenda
- Support the NY Working Families Tax Credit! — NYIC one-pager
- Working Families Tax Credit Calculator
- Take Action: Send a letter to state leaders urging a budget that includes robust family tax credits.
Recent articles
- Increase New York’s refundable tax credit to combat child poverty – Interview with Kate Breslin (Capital Tonight, 3/28/24)
- New York Lawmakers Consider Tax Reforms to Aid ITIN-Filers (City Limits, 3/25/24)
- Working Families Tax Credit key to combating child poverty (Capitol Pressroom, 3/14/24)
- Poverty Has Soared in New York, With Children Bearing the Brunt (New York Times, 2/21/24)
- Caring for New York’s children through tax credits and budget funding (Spectrum News, 2/2/24)