Gov. Kathy Hochul is proposing a large expansion of New York’s child tax credit as part of her 2025 State of the State executive agenda, the governor announced Monday.

Under her proposal, families would receive an annual credit of up to $1,000 per child under age 4 and up to $500 per child from age 4 to 16. The current rate is set at $330 per child.

Families earning up to $170,000 annually would be eligible for the credit.

“It will be the largest expansion of the child tax credit in our state’s history,” Hochul said at an event in New York City.

The state estimates this expansion would support more than 2.75 million children.

“Two years’ worth of diapers, a year’s supply of formula, or two months of groceries, at least, months of groceries. So it’s about giving parents the peace of mind so they’re not so stressed out. That’s what we’re trying to do here,” Hochul said.

Child care rose to a prominent issue particularly during the COVID-19 pandemic when federal credits were expanded, which led to child poverty rates dropping to historic lows. Those rates have ticked back up as federal assistance ended with the pandemic.

“This decision to triple the size of this tax credit has the power to lift us out of poverty, lift our families up and continue the trajectory we’re on,” Hochul said.

Hochul will lay out her executive proposals in her annual State of the State address in Albany next Tuesday.