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Assembly details tax package: expanded child credits, new 'New York Works' credit and ultra‑millionaire surtax
Summary
The Assembly's one‑house plan pairs $3.7 billion in middle‑class tax relief with several new credits (including an enhanced child tax credit and 'New York Works') and surtaxes on very high earners and large corporations to raise revenue for investments; the sponsor said these measures would phase in and provide targeted relief.
In floor remarks, Chairman Pretlow laid out the Assembly's tax package that accompanies its one‑house budget resolution. He said the plan includes a $3.7 billion middle‑class tax cut plus a set of credits and targeted revenue measures intended to fund expanded programs. "The 1 house proposal our our tax relief proposal is, $3,700,000,000," Pretlow said while walking members through the components.
Pretlow described an enhanced state child tax credit that would raise maximum payments for the youngest children and extend benefit eligibility for many filers: "For children under the age of 4, the maximum credit would be increased from $330 to $1,000. And for children age 4 through 16, the maximum credit would be increased from $300 to $500," he said and estimated an $825 million fiscal impact for SFY 2025–26. The plan also consolidates and replaces some credits with a New York Works tax credit, and includes a new LIFT credit for certain filers.
On the revenue side, Pretlow and others defended higher rates on ultra‑high incomes and a franchise tax increase for very large corporations. The chair estimated roughly $1.6 billion in revenue in the first year from raising the corporate franchise tax for firms with an excess income base above $10 billion and said the top personal income surtax targets those earning above $5 million up to a 12% top rate.
