NYS/Ranzenhofer Introduces Bill to expand Child Tax Credit, rising child-care costs a major burden for parents, provides $225 million in new tax relief for middle-class families

Press release

Albany, NY– Senator Michael H. Ranzenhofer (R-C-I, Amherst) has introduced legislation (S7815) today in the State Senate to expand New York’s Child and Dependent Tax Credit by doubling the current cap on child care expenses across the board.

“Child care costs continue to rise for parents. These high costs are a major burden for families, even among households with both parents working. This legislation would make it a little easier for hardworking parents by doubling the child tax credit. This new proposal makes it more affordable to raise a family in New York State,” said Ranzenhofer.

The proposed expanded tax credit is estimated to provide $225 million in new relief for middle-class families. Most families are estimated to receive a new average credit of $750, an increase of $375 from last year.

Under existing law, taxpayers are eligible to claim the Child and Dependent Care Tax Credit to help offset the costs of caring for a child under the age of 13, a disabled spouse or a disabled dependent. The expense amount allowed toward the credit is limited at various levels depending on the number of children.

Number of Children           Current Cap (2018)            Proposed Cap (2019)

1                                           $3,000                                                     $6,000

2                                           $6,000                                                     $12,000

3                                           $7,500                                                     $15,000

4                                           $8,500                                                     $17,000

5 or more                             $9,000                                                     $18,000

If enacted, taxpayers would be able to take advantage of the increased limits starting in 2019

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