Relates to a working families tax credit

• Democratic57
• Republican6

◆ The sponsor's argument

Why Andrew Gounardes says this is needed

The expanded federal child tax credit provided for in the American Rescue Plan Act of 2021 successfully lifted 2.9 million children out of poverty, driving the rate of child poverty to a record low. Despite its remarkable efficacy, the program was not renewed. New York must address the federal government's shortfall and provide support for working fami- lies in our state. The proposed NYS Working Families Tax Credit (WFTC), which mirrors the top policy recommendation of the New York State Child Poverty Reduction Advisory Council, streamlines the state Earned Income Tax Credit (EITC), Empire State Child Tax Credit (ESCC), and the dependent exemption (DE) to provide working families with increased support while making the most of our state's tax system. The NYS WFTC fills many of the gaps of the current state EITC and CTC, such as: * Including children aged 17 * Including families regardless of citizenship status * Eliminating the phase-in, allowing those with the lowest income to receive the largest Credit * Indexing the WFTC to inflation The new system also increases the cred- it provided to all families by: * Increasing the maximum credit to $1,600 per child * Providing a $100 credit per child regardless of income Additionally, the new WFTC will be paid out quarterly, providing fami- lies with four payments per year instead of one lump sum annually. Those with older children and dependent relatives who fall outside of the range of the WFTC and are currently eligible for the EITC and dependent exemption would continue to claim them. The benefits of the proposed WFTC are numerous. It is estimated that the new credit will result in a 15.5% reduction in children under the age of 18 living in poverty, with a 24.4% reduction for those under 18 living in deep poverty. It will also lead to increased educational attainment and employment opportunities for these children, benefitting not only those individuals but their communities and the state at large.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.