Senate Bill 291 aims to expand the eligibility for the business development tax credit in Wisconsin by allowing businesses to claim a credit of up to 15 percent for various costs associated with providing child care services for employees. This includes not only capital expenditures for establishing child care programs but also operational costs, reimbursements for employee child care expenses, and contributions to dependent care flexible spending accounts. The bill also introduces a new provision that allows the Wisconsin Economic Development Corporation to certify nonprofit entities under section 501(c)(3) of the Internal Revenue Code for these tax credits.

The bill includes several amendments to existing statutes, such as renumbering and redefining terms related to eligible employees and investments. Notably, it replaces the term "investment in establishing an employee child care program" with "costs incurred to provide child care services for employees" in multiple sections. Additionally, it creates a new definition for costs related to child care services and specifies that the tax credit can apply to both capital expenditures and operational costs. The changes are set to take effect for taxable years beginning after December 31, 2024.

Statutes affected:
Bill Text: 71.07(3y)(a)2, 71.07, 71.07(3y)(b)6, 71.28(3y)(a)2, 71.28, 71.28(3y)(b)6, 71.47(3y)(a)2, 71.47, 71.47(3y)(b)6, 238.308(2)(a)1, 238.308, 238.308(4)(a)6