“Far too many parents have to sacrifice working to build their family’s financial future because affordable, high quality day care is financially out of reach,” Governor Cuomo said. “This newly enhanced 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. With this proposal, we will be helping to build a stronger, better New York that truly lives up to its motto: Excelsior.”
The Enhanced Middle Class Child Care Tax Credit would supplement the current New York State Child and Dependent Care Tax Credit and more than double the benefit for families earning between $60,000 and $150,000.
New York State currently offers a fully refundable Child and Dependent Care Tax Credit, which offers a maximum benefit of 110 percent of the federal credit for taxpayers with incomes below $25,000, and the rate phases down to a low of 20 percent of the federal credit for those with incomes of $65,000 or above. For tax year 2014, nearly 520,000 New York families received almost $189 million from this credit.
Under the Governor’s proposal, 200,000 families earning between $60,000 and $150,000 would see their average benefit double, on average from $169 to $376. The total program cost would be $42 million. Families making less than $50,000 already receive a considerable benefit.
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