Bill > A04038

This bill expands the Empire State Child Tax Credit by doubling the tax credit amount for families with qualifying children under one year of age, beginning in the 2026 tax year. The legislation is motivated by recognizing the unique financial challenges faced by families during an infant's first year, including high costs for healthcare, diapers, formula, and other necessities. The bill aims to provide additional financial support to families with young children, potentially helping to reduce economic disparities and improve early childhood outcomes. The New York State Commissioner of Taxation and Finance is tasked with developing a notification system to inform eligible families about the expanded credit, creating a streamlined process for claiming the credit, and implementing safeguards against fraud. Specifically, for any taxable year where a child is under one year old, the tax credit will be double the standard amount. The bill will take effect on January 1, 2026, and apply to taxable years beginning on or after that date, giving the state time to prepare implementation procedures.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4038