Assembly Bill 283 proposes amendments to existing statutes to expand the eligibility of certain child care expenditures for the business development tax credit. Currently, businesses can receive a refundable tax credit of up to 15% for capital investments in employee child care programs. The bill broadens this definition to include various costs associated with providing child care services, such as operational expenses, reimbursements for employee child care costs, and contributions to dependent care flexible spending accounts. Additionally, it allows the Wisconsin Economic Development Corporation to certify nonprofit entities for tax credits related to child care services.

The bill includes several specific amendments, such as renumbering existing definitions and creating new ones to clarify what constitutes eligible costs for child care services. Notably, it deletes the previous requirement that only capital expenditures qualify for the credit, thereby allowing a wider range of expenses to be considered. The changes are set to take effect for taxable years beginning after December 31, 2024, and aim to support businesses in providing child care benefits to their employees, ultimately fostering a more family-friendly work environment.

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