‘Working Families’ tax credit proposal updated

Fresh off a major legislative victory in June, state Sen. Andrew Gounardes tweaked his high-profile anti-poverty initiative this summer in hopes of boosting its chance of adoption in 2025.

Legislation creating the Working Families Tax Credit was amended in two ways that make the credit “much more financially – and therefore politically – viable,” according to the Brooklyn Democrat’s office. The lowest benefit provided by the credit has decreased from $500 to $100 per child for higher income families and the five-year implementation of the credit has been adjusted to “smooth out the fiscal impact” to about $500 million a year.

“We’ll be making another hard push for it in next year’s legislative session,” said the senator’s office.

The tax credit, which exists as a standalone proposal, was part of budget negotiations this year, but Gov. Kathy Hochul and the Democratic majorities in the state Legislature opted to make a smaller anti-poverty investment this year. The state budget adopted in April includes additional funding for the Empire State Child Credit, which is being distributed now.

The child credit expansion will have a positive impact on combatting child poverty in New York, but advocates in the space want a long-term investment on a much larger scale than what was in this year’s budget.

Schuyler Center for Analysis & Advocacy Director of Policy Dede Hill is supportive of the latest changes to the Gounardes proposal, stressing the importance of “robust credits” for families in need. “We also recognize the middle income families, and even higher income New York families struggle to keep up with the high cost of raising children, and are pleased the tax credit will still provide some tax relief to higher income families with children,” she said.