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WI AB369

WI AB369
A tax credit for employer-provided child care. (FE)


summary

Introduced
07/17/2025
In Committee
02/13/2026
Crossed Over
Passed
Dead

Introduced Session

Potential new amendment
2025-2026 Regular Session

Bill Summary

This bill allows a person who is eligible to claim the federal employer-provided child care credit to claim a nonrefundable state income and franchise tax credit equal to the amount the person may claim for the federal employer-provided child care credit. Under current federal law, a person may claim a federal employer- provided child care tax credit of up to 25 percent of qualified child care expenditures associated with acquiring or constructing a child care facility and 10 percent of qualified child care resource and referral expenditures, up to a maximum credit of $150,000. Federal law provides that if a child care facility for which a federal employer-provided child care credit is claimed ceases to operate within 10 years, the person who claimed the credit must pay back a specified portion of the credit based on the duration that the person operated the facility. Under the bill, if a claimant must repay a portion of the federal employer-provided child care credit to the federal government, the claimant must also repay to the Department of Revenue an amount equal to the amount repaid to the federal government. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill establishes a new state tax credit for employers who provide child care services, mirroring the existing federal employer-provided child care credit. Specifically, for tax years beginning after December 31, 2024, eligible businesses can claim a nonrefundable state income and franchise tax credit equal to the amount they claimed on their federal tax return for child care expenditures. The credit is limited to expenses for child care facilities and services located within Wisconsin, and if a business must repay any portion of the federal credit (for example, if a child care facility ceases operations within 10 years), they must also repay an equivalent amount to the state Department of Revenue. The bill amends various sections of Wisconsin's tax statutes to incorporate this new credit, ensuring it can be claimed across different types of business entities like partnerships, limited liability companies, and tax-option corporations. The credit is designed to incentivize employers to invest in child care services for their employees by providing a dollar-for-dollar state tax offset to the federal child care credit.

Committee Categories

Budget and Finance

Sponsors (17)

Last Action

Laid on the table (on 02/17/2026)

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