Senate Bill 291 aims to expand the eligibility of certain child care expenditures for the business development tax credit in Wisconsin. Currently, businesses can receive a refundable tax credit of up to 15% for capital investments in establishing employee child care programs. The proposed changes will allow businesses to claim credits for a broader range of costs associated with providing child care services, including operational expenses, reimbursements to employees for child care, and contributions to dependent care flexible spending accounts. Additionally, the bill introduces new definitions and provisions regarding these costs, specifically creating a new section that outlines what constitutes eligible child care service expenditures.

The bill also includes amendments to existing statutes to reflect these changes, such as renumbering and redefining terms related to eligible employees and investments. Notably, it allows the Wisconsin Economic Development Corporation to certify nonprofit entities for tax credits related to child care services. The changes are set to take effect for taxable years beginning after December 31, 2024, thereby providing businesses with more flexibility and support in facilitating child care for their employees.

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