New York Assembly Bill A01972

New York 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25
• Refer: 1/7/26

Caption

Adjusts the calculation of the empire state child credit to provide for a one thousand dollar credit per qualifying child who is less than four years of age and a five hundred dollar credit per qualifying child who is four years of age or older for certain qualifying taxpayers.

Summary

This bill would amend New York’s tax law to change how the Empire State child credit is calculated for eligible resident taxpayers. Under the proposal, qualifying taxpayers with income below specified thresholds would receive a credit equal to the greater of two amounts: a flat per-child credit of $1,000 for each qualifying child under age 4 and $500 for each qualifying child age 4 or older, or 33% of the federal child tax credit for the same taxable year. The bill also preserves the existing rule that, for taxpayers above the federal child tax credit income threshold, the state credit would be limited to the percentage-of-federal-credit calculation. The measure is designed to increase support for families with young children, especially those with children under age 4, by creating a higher credit amount for that age group. It also updates the state credit’s interaction with the federal child tax credit by tying the state benefit to the federal credit as it existed before the 2017 federal tax changes, and it specifies how the law applies during and after the end of the American Rescue Plan Act child tax credit expansion. In practical terms, the bill would amend section 606 of the Tax Law governing the Empire State child credit and would affect resident individual taxpayers who claim qualifying children. It would likely increase state tax relief for many low- and middle-income families, with the largest per-child benefit going to families with children under four, while maintaining income-based eligibility limits. The overall sentiment reflected in the bill materials is supportive of expanding child tax relief, with the proposal framed as a family-focused tax benefit rather than a controversial tax overhaul. No committee transcript or vote record is provided, so there is no recorded floor debate or formal vote history to indicate broader legislative opposition or support. The main point of policy distinction is the age-based credit structure and the continued linkage to federal child tax credit rules, which may affect how much benefit different households receive.

Impact

The bill would amend Tax Law section 606(c-1) to revise the Empire State child credit formula, creating a higher fixed credit for children under age 4 and a lower fixed credit for children age 4 and older, while retaining a percentage-of-federal-credit alternative. It would affect eligible New York resident taxpayers claiming qualifying children and would apply beginning immediately, with timing rules tied to the expiration of the federal American Rescue Plan child tax credit expansion and to tax years beginning on or after January 1, 2026, whichever is later.

Sentiment

The bill appears to have a generally positive, family-supportive policy orientation, as it expands or restructures a tax credit intended to help households with children. Because there are no committee transcripts or recorded votes included, there is no documented public disagreement in the provided materials. The available context suggests the measure is presented as a targeted tax relief proposal for parents and caregivers rather than a contentious tax increase or spending cut.

Contention

The principal policy issue is the bill’s age-based differentiation, which gives a larger credit to children under four than to older children, potentially raising questions about fairness among families with children of different ages. Another possible point of contention is the bill’s continued reliance on federal child tax credit definitions and thresholds, including references to pre-2017 federal law and the end of the American Rescue Plan Act expansion, which could create complexity in administration and eligibility timing. No specific opponents or supporters are identified in the provided record.