The Costs and Benefits of Expanding the Empire State Child Tax Credit

The Costs and Benefits of Expanding the Empire State Child Tax Credit

Research finds that cash and near-cash benefits increase children’s health, education, and future earnings while also decreasing costs with respect to health, child protection, and criminal justice. We find that expanding the Empire State Tax Credit to $1,000 per child for all children in New York State under 17, with the exception of high-income families, would cost about $2.7 billion and would generate about $26.2 billion in benefits to society.

Key Findings

  • High quality research finds that cash and near-cash benefits increase children’s health, education, and future earnings and decrease health, child protection, and criminal justice costs.

  • The value to society that flows from these impacts is equal to over nine times the annual costs.

  • Expanding the Empire State Tax Credit to $1,000 per child for all children in New York State under 17, with the exception of high-income families, would cost about $2.7 billion and would generate about $26.2 billion in benefits to society.

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Suggested Citation: 

Garfinkel, Irwin, Laurel Sariscsany, Elizabeth Ananat, Sophie Collyer, and Christopher Wimer. 2021. The costs and benefits of expanding the Empire State Child Tax Credit. Poverty and Social Policy Brief, vol. 05, no. 2. New York: Center on Poverty and Social Policy, Columbia University. 

Published on March 08, 2021