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 credit will be equal to the amount claimed under the federal program, which allows for a credit of up to 25% of qualified expenditures for 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 also repay an equivalent amount to the Wisconsin Department of Revenue.

The bill includes several amendments and new sections to the statutes, specifically adding provisions for the additional employer-provided child care credit under various sections, including 71.07 (8s), 71.28 (8s), and 71.47 (8s). It also amends existing sections to incorporate the new credit, ensuring that partnerships and tax-option corporations account for these credits in their income calculations. The legislation aims to support employers in providing child care services, thereby promoting workforce participation and addressing child care needs in Wisconsin.

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