Smullen Calls for Child-Care Tax Credit Expansions Through Minority ABC Plan

Assembly Minority members held a child-care press conference today in Albany.

Assemblyman Robert Smullen (R,C-Mohawk Valley and the Adirondacks) joined his fellow colleagues in the Assembly Minority to address growing child-care concerns in the state. Legislators and stakeholders called for reliable state funding for the Child Care Assistance Program (CCAP) and laid out their “A Blueprint for Childcare (ABC) Plan,” which includes a comprehensive set of targeted tax reforms and a reduction in red tape designed to make child care more affordable and accessible for working families across New York.

“New York families are struggling under some of the highest child-care costs in the nation,” said Smullen. “Instead of repeating the cycle of expanding programs without fixing the underlying problems, the ABC Plan delivers real relief directly to parents through meaningful tax credits while encouraging more providers to enter the market. We want to put money back in families’ pockets and help build a sustainable child-care system that actually works.”

The ABC Plan’s tax credit expansions focus on putting resources directly into the hands of families and incentivizing growth in child-care supply. Key elements include:

  • Expanding the Child and Dependent Care Tax Credit (CDCTC) by increasing the state allowance for qualified expenses by 15%.
  • Increasing the Empire State Child Credit to 45% of the federal Child Tax Credit.
  • Raising the State Earned Income Tax Credit from 30% to 45%.
  • Creating a new Child Care Facility Capital Improvement Tax Credit to help providers modernize and expand their facilities.
  • Doubling the Child Care Creation and Expansion Tax Credit.

These targeted tax relief measures are projected to deliver nearly $1 billion in combined savings and incentives, helping to lower out-of-pocket costs for families while addressing the supply shortages that have left many communities with limited options.

“By focusing on tax credits and removing barriers for providers, we can make child care more affordable without simply throwing more money at a broken system,” Smullen added. “The ABC Plan represents a smarter, more sustainable path forward for New York families that does not favor urban communities over rural ones.”