New York Senate Bill S00367

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• 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

S00367 would amend New York’s tax law to change how the Empire State child credit is calculated for eligible resident taxpayers. Under the bill, qualifying taxpayers with income below the existing thresholds would receive a credit equal to the greater of two amounts: a fixed credit based on the age of each qualifying child, or a percentage of the federal child tax credit. The fixed credit would be increased to $1,000 for each qualifying child under age four and $500 for each qualifying child age four or older, replacing the current flat $1,000-per-child structure. The bill also preserves the alternative calculation tied to the federal child tax credit, including the rule that if a taxpayer’s federal income exceeds the federal child tax credit threshold, the state credit would be limited to the percentage-based amount. It references the federal child tax credit rules as they existed before the 2017 federal tax changes and sets the applicable percentage at 33 percent. The bill is intended to take effect immediately, but its application is phased so that it would apply to children not receiving the federal child tax credit under the American Rescue Plan Act of 2021, and then to other qualifying children when that federal expansion ends or for tax years beginning on or after January 1, 2026, whichever is later.

Impact

This bill would amend section 606 of the Tax Law governing the Empire State child credit, changing the amount and structure of the credit for eligible New York resident taxpayers. It would create a higher state credit for children under age four while maintaining a lower amount for older qualifying children, and it would continue to coordinate the state credit with the federal child tax credit framework. The measure would affect taxpayers claiming the credit, particularly families with young children, and would alter the Department of Taxation and Finance’s administration of the credit beginning with the applicable tax years specified in the bill.

Sentiment

The available context suggests generally favorable treatment of the bill, as reflected by its introduction by multiple senators and referral to the Senate Committee on Budget and Revenue. However, there are no committee transcripts or recorded votes provided, so there is no direct evidence of debate, opposition, or formal support in the materials supplied. The bill’s design indicates a policy preference for expanding child-related tax relief, especially for very young children.

Contention

The main policy issue embedded in the bill is the age-based difference in credit amounts, which favors children under four with a larger benefit than older qualifying children. Another potential point of discussion is the bill’s interaction with federal child tax credit rules, including its reliance on pre-2017 federal definitions and its delayed broader application until the federal American Rescue Plan child tax credit changes end or until 2026. No specific objections or proponents are identified in the provided transcripts or voting history, so any contention is inferential rather than documented.