Does the increase in the Child Tax credit affect the Empire State child credit as well?

Question

NY state has a tax credit called the Empire state child tax credit. According to the description of this credit on the NY state department of finances website

If you claimed the federal child tax credit, the amount of the Empire State child credit is the greater of:

• 33% of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children, or
• $100 multiplied by the number of qualifying children.

Does this mean that now that the Federal Child tax credit has doubled to $2,000 I can claim up to $660 per qualifying child for tax year 2018 (instead of the old $330)?

Answer 1

I had wondered this ever since late 2017, when the Federal tax reform law passed. Unfortunately, the budget just passed in New York state includes provisions that restore the child tax credit to its previous levels (i.e., before Federal tax reform).

Here is a link to a report that analyzes the entire budget, including this specific provision (look for "Maintains 2017 Empire State Child Tax Credit Benefits at Current Levels"):

Maintains 2017 Empire State Child Tax Credit Benefits at Current Levels (Part P). The Empire State Child Tax Credit amount is calculated as a percentage of the Federal child tax credit. The Federal child tax credit was increased by the Federal tax reform legislation (Public Law 115-97). To avoid a coincidental increase in the New York credit, the Final Bill ties the New York credit to Federal law existing immediately prior to the Federal reform.

Answer 2

I was wondering the same thing recently, so I asked them:

From: New York State Department of Taxation and Finance

Sent: Tuesday, March 20, 2018, 10:43:42 AM EDT

Subject: Empire State Child Credit in 2018 after federal tax credit changes

[Incident: 180320-000078]

[…]

Question Reference #180320-000078

                 Summary: Empire State Child Credit in 2018 after
                          federal tax credit changes
        Category Level 1: Credits
            Date Created: 03/20/2018 10:43 AM
            Last Updated: 03/20/2018 10:43 AM
                  Status: Unresolved
           Question Type: Estimated Tax

[…]

Discussion Thread

Customer By Web Form - 03/20/2018 10:43 AM Hello,

I know that the eligibility and amount of the Empire State Child Credit for 2017 is tied to the eligibility and amount of the federal child tax credit.

However, now that the federal child tax credit has undergone such major changes (especially to the amount and income limits) between 2017 and 2018, have any of the rules changed for the Empire State Child Credit for 2018? Or if I've become eligible to claim the federal tax credit in 2018 thanks to these changes, does that mean I would be eligible for the Empire State Child Credit?

[---001:001325:43304---]

Their response:

From: New York State Department of Taxation and Finance

Sent: Friday, March 23, 2018, 2:32:05 PM EDT

Subject: Empire State Child Credit in 2018 after federal tax credit changes [Incident: 180322-000072]

Recently you requested personal assistance from our on-line support center. Below is a summary of your request and our response.

Subject

Empire State Child Credit in 2018 after federal tax credit changes

Discussion Thread

Response Via Email(56464) - 03/23/2018 01:16 PM Thank you for contacting the New York State Department of Taxation and Finance.

As of right now we only have 2017 information .

If you need additional assistance, please visit the Department of Taxation and Finance website or call [...]

Customer By Email - 03/22/2018 10:45 AM That link leads to a form which says it is for year 2017. Do you have anything that covers 2018?

Question Reference #180322-000072

            Date Created: 03/22/2018 10:45 AM
            Last Updated: 03/23/2018 01:16 PM
                  Status: Solved
           Question Type: Estimated Tax

[…]

[---001:001620:61155---]

So apparently, as of now, the state taxing authority doesn't know either.

Answer 3

The instructions to IT-213 (and the webpage for Empire State Child Credit) specifically says eligibility depends on (a) that you can claim child tax credit (and other child credits) on 1040 OR (b) that your income doesn't exceed the thresholds (married filing jointly, HOH, single/married filing separately). The emphasis is on "OR". Apparently, NYS still applies the income threshold even though you can claim federal child credit with income higher than that of thresholds for Empire State Child Credit. So the "OR" is incorrect at best or a lie at worst.