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NEW YORK STATE (WENY) -- A new proposal from N.Y. Governor Kathy Hochul would expand the child tax credit, allowing families with children to earn more money. In the 2025 State of the State proposal, the child tax credit would nearly triple for roughly 1.6 million families.

"I want to support families, especially in those earliest years when you're not getting enough sleep at night [and] stressed out. But family by family, child by child, community by community, we will make this place better, more affordable, and livable," said Gov. Hochul.

Hochul's plan would give New York families an annual tax credit of up to $1,000 per child under the age of four, and up to $500 per child ages four to 16. The existing credit is $330 per child.

Gov. Hochul said she understands how hard it can be for parents to make ends meet.

"It's about giving parents the peace of mind so they're not so stressed out... It goes beyond that. People spend money for every dollar we invest in a family, they're spending $1.25 in economic impact in those grocery stores, neighborhood shops, mechanics, the plumber, everybody. They benefit when you have more money to cycle in the system because [they're] able to cover [their] expenses," said Gov. Hochul.

The proposed expansion of the child tax credit would help provide significant assistance to families with the youngest children and families across the income spectrum. The governor's office said the average credit given would double from $472 to $943, which will be instrumental in helping address child poverty in the state and deliver relief to many middle-class families who previously didn't qualify.

Gov. Hochul said this proposed expansion will put money back in the pockets of about 1.6 million families across the state, and lift some financial fortunes for over 2.75 million kids.

The regional breakdown according to the Governor's Office can be found below.

Key:
Region -- Estimated Households Benefiting -- Estimated Children Benefiting

NYC -- 740,000 -- 1.2 Million
Long Island -- 215,000 -- 355,000
Mid-Hudson -- 180,000 -- 330,000
Western New York -- 118,000 -- 207,000
Finger Lakes -- 104,000 -- 180,000
Capital Region -- 86,000 -- 145,000
Central New York -- 67,000 -- 116,000
Southern Tier -- 51,000 -- 89,000
Mohawk Valley -- 43,500 -- 76,500
North Country -- 35,000 -- 61,000

According to the governor's office, the credit will be phased in over two years, with households with kids under four years old eligible for their $1,000 credit in the 2025 tax year. Those with children over the age of four are eligible for the $500 credit in the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.

Gov. Hochul's announcement on Monday, January 6th, builds off her first 2025 State of the State proposal to send inflation refund checks of up to $500. She said this will benefit about 15 million people statewide. The governor's office said the inflation refund would help address the impacts of inflation on the cost of everyday goods post-pandemic.

To watch Gov. Hochul's Second Proposal for the 2025 State of the State, click here.