MAYOR ADAMS APPLAUDS EARNED INCOME TAX CREDIT ENHANCEMENT IN STATE BUDGET, FULFILLING PLEDGE TO BOLSTER SOCIAL SAFETY NET FOR WORKING FAMILIES

Over 800,000 New York City Families to Benefit From Enhancement

 

City to Invest $250 Million Annually and Receive One-Time State Payment Estimated at $100 Million

New York City Mayor Eric Adams today was joined by elected officials and community leaders to celebrate the enhancement of the Earned Income Tax Credit (EITC) in the state budget. The EITC enhancement was part of a campaign pledge from the administration to bolster the social safety net and expand services for working families in New York City. At today’s event, Mayor Adams announced over 800,000 families will benefit from the enhancement. Additionally, the city committed to investing $250 million annually to EITC and will receive a one-time state payment estimated at $100 million. 

“Earlier this year, I told New Yorkers I would fight for them by expanding the Earned Income Tax Credit. Today, we say to New Yorkers: promises made and promises kept,” said Mayor Adams. “The additional $250 million annually in EITC reaches 800,000 New Yorkers — putting money back in their pockets for food, bills, and rent. Too many working families suffered because of COVID-19, losing wages and falling through our social safety net. With this critical expansion, we are making sure no one falls through the gaps again.”

 

“The Earned Income Tax Credit enhancement is this administration’s continued commitment to work on behalf of working families,” said Deputy Mayor for Strategic Initiatives Sheena Wright. “We will continue to fight for New York City families to have access to the social services needed to thrive and survive — from EITC to child care. We thank our colleagues in Albany for their partnership and commitment to rebuilding our social safety net.”

 

“For our city to move forward with an equitable recovery, we must invest in our working families and, thanks to Mayor Adams’ leadership and partnership with lawmakers in Albany, New York City is doing just that,” said Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga. “By increasing the amount of the Earned Income Tax Credit to be in line with the reality of today’s cost of living, we are putting money in the pockets of hardworking New Yorkers. Each year, NYC Free Tax Prep helps families file for the EITC, and we see the relief this credit brings to families as they pay bills, find childcare, and buy groceries. I thank Mayor Adams for being a champion of this effort!”

 

The state and city match to EITC had not previously been increased in almost 20 years. Under the city’s expansion of the EITC, a single parent with one child with an income of $14,750 will see their benefit increase from $181 to $905 — a 400 percent increase. A married couple with two children and an income of $25,000 will see their New York City benefit increase from $299 to $897 under the city payment — a 200 percent increase. The expansion of EITC will help the 800,000 New Yorkers who qualify to better afford essential items like food, rent, and utilities, and will supercharge New York City’s economic recovery.