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Norfolk legislator praises governor’s plan to provide additional childcare tax credits for working families

Posted 1/6/17

CANTON – Norfolk County Legislator John Burke is praising Gov. Andrew Cuomo’s call to provide additional childcare tax credits to working families. The Enhanced Middle Class Child Care Tax Credit …

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Norfolk legislator praises governor’s plan to provide additional childcare tax credits for working families

Posted

CANTON – Norfolk County Legislator John Burke is praising Gov. Andrew Cuomo’s call to provide additional childcare tax credits to working families.

The Enhanced Middle Class Child Care Tax Credit would supplement the current Child and Dependent Care Tax Credit and more than double the benefit for families earning between $60,000 and $150,000.

“Governor Cuomo’s plan to make child care more affordable for middle class families is commendable, and highlights his commitment to working families in our county and around the state. As outlined, the new Enhanced Middle Class Child Tax Credit will significantly increase childcare benefits for over 200,000 families statewide. Easing the financial burden of working families is an important initiative for our community,” Burke said in a prepared statement.

Cuomo says his Enhanced Middle Class Child Care Tax Credit will help more than 200,000 middle class families make their child care more affordable.

For many families, limited access to these programs can force parents to choose between providing safe, quality child care arrangements and work, Cuomo says.

“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.”

Enhanced Middle Class Child Care Tax Credit

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 $50,000 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.

A breakdown representing how this tax credit will affect middle class families is below:

• Income Range • Old Average State Credit • New Average State Credit • $ Increase • Taxpayers Affected

• $50,000 – $54,999 • $518 • $605 • $87 • 16,465

• $55,000 – $59,999 • $355 • $452 • $97 • 14,682

• $60,000 – $64,999 • $196 • $456 • $260 • 13,195

• $65,000 - $74,999 • $116 • $347 • $231 • 24,005

• $75,000 – $99,999 • $113 • $340 • $227 • 54,375

• $100,000 – $149,999 • $111 • $333 • $222 • 79,135

• Total Taxpayers Affected • 201,857