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 adding provisions for the new state credit under sections 71.07 (8s), 71.28 (8s), and 71.47 (8s), among others. It also amends existing sections to incorporate the new credit into the calculation of taxable income for partnerships and corporations. Notably, the bill specifies that the state credit cannot be claimed for expenditures related to child care facilities or services located outside Wisconsin, and it outlines the administrative procedures for filing claims.

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