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Family Tax Credit: New York mulls $500M to support families in 2024-25 budget

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  • Staff Report 

New York lawmakers are advocating for a $500 million tax credit initiative in the state budget to provide financial relief to low- and middle-income families grappling with economic pressures. This proposal, aimed at addressing the affordability crisis exacerbated by high food, utility, and rent costs, seeks to introduce a more generous Working Families Tax Credit, offering up to $550 per child for eligible taxpayers.

The tax credit, designed to ease the financial burden on families, is expected to phase in over five years, offering a significant boost to household budgets. According to Senator Andrew Gounardes, the credit could cover essential expenses like clothing, food, and utility bills, thereby supporting families in need and stimulating economic growth across the state. The Strong Economy for All Coalition predicts the initiative could generate an additional billion dollars in statewide spending.

Both the Senate and Assembly’s budget proposals focus on enhancing the state’s affordability and supporting New Yorkers facing financial difficulties. Despite differences in their approaches, both legislative bodies share a commitment to reducing poverty through tax credits. As negotiations continue, lawmakers highlight the importance of addressing housing affordability as a critical factor in the state’s cost of living crisis, underscoring the need for a comprehensive solution to support New York’s working-class families.