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Gov. Cuomo to propose expanded child care tax credit

New York State Gov. Andrew M. Cuomo is seen

New York State Gov. Andrew M. Cuomo is seen on Jan. 3, 2017.  Credit: Charles Eckert

ALBANY — Gov. Andrew M. Cuomo on Thursday proposed expanding the state’s tax credit to help offset the cost of child care, which would mean a total credit of $605 for households earning $50,000 to $55,000 a year with smaller credits for families making up to $150,000.

The proposal is part of Cuomo’s State of the State initiatives that will be subject to negotiations with the legislature.

Some families would see a doubling of their tax credit under Cuomo’s proposal:

  • A household with an income of $50,000 to $55,000 would see an $87 increase in the credit, to an average of $605.
  • A household with an income of $55,000 to $60,000 would see a $97 increase to $452 on average.
  • A household with an income of $60,000 to $65,000 would see a $260 increase to $456 on average.
  • A household with an income of $65,000 to $75,000 would see a $231 increase to $347 on average.
  • A household with an income of $75,000 to $100,000 would see a $227 increase to $340 on average.
  • A household with an income of $100,000 to $150,000 would see a $222 increase to $333 on average.

Cuomo estimates that more than 200,000 households would benefit.

The state already offers a child and dependent care tax credit of 110 percent of the federal credit for families with a household income below $25,000. The rate phases down to a low of 20 percent of the federal credit for those with incomes of $65,000 or above.

“This newly enhanced tax credit will make it easier for more New Yorkers to be able to secure day care for their children and able to enter or stay in the work force with peace of mind,” Cuomo said.

Cuomo will release his full State of the State address next week.

“Governor Cuomo’s expansion of the child care tax credit is a step in the right direction, but he needs to go much farther in his Executive Budget toward addressing the unmet child care needs in New York State,” said Karen Scharff, executive director of Citizen Action of NY, an advocacy group that works closely with the Working Families Party.

“Only 17 percent of eligible low-income families are able to access subsidized child care services because of the state’s underfunding, leaving affordable, quality child care out of reach for the vast majority of families making under $50,000,” Scharff said. “To meet this need, the governor’s budget proposal should include a significant additional investment in child care subsidies.”

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