Senate Bill 376 proposes the establishment of a nonrefundable state income and franchise tax credit for individuals who are eligible for the federal employer-provided child care credit. This state credit will equal the amount claimed under the federal credit, which allows for up to 25% of qualified expenditures related to child care facilities and 10% for resource and referral expenditures, with a maximum credit of $150,000. The bill also stipulates that if a claimant is required to repay any portion of the federal credit due to the cessation of operations of a child care facility within ten years, they must similarly repay the state an equivalent amount.

The bill includes several amendments and new sections to the statutes, specifically creating new subsections related to the additional employer-provided child care credit. Notably, it introduces definitions for "claimant" and "federal employer-provided child care credit," and outlines the filing process and limitations for claiming the state credit. The bill also specifies that the credit cannot be claimed for expenditures related to facilities or services outside of Wisconsin and includes provisions for tax liability adjustments if the federal income tax is increased. Overall, the legislation aims to support employers providing child care by aligning state tax benefits with federal provisions.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26, 71.34(1k)(g), 71.34, 71.45(2)(a)10, 71.45