WisconsinBusinesses could seek tax credits for employee child care costs
Businesses could seek a tax credit for some employee child care costs, while certain charitable nonprofits could be certified for related tax benefits.
What it does
Businesses could receive a tax credit of up to 15 percent for qualifying costs tied to child care for employees. The text’s capital spending limit may narrow which listed costs count.
Certain charitable nonprofits could be certified for tax benefits tied to child care costs for employees.
Argument forA tax benefit for qualifying employer child care costs could help businesses offer employees more ways to arrange care.
Argument againstThe tax benefit could reduce state tax collections for qualifying child care costs, including costs tied to employer programs.
More detail
The text provides for a business development tax credit tied to certain employer child care costs. The definition lists setting up or running a child care program, reimbursing employees, buying or reserving care slots, employer contributions to dependent care accounts, and other employer benefits that help employees use child care. The credit amount is up to 15 percent of the qualifying investment, as determined by the Wisconsin Economic Development Corporation. The text also says investments may include only capital expenditures made by the business; how that limit applies alongside the broader cost definition is unclear. The text says the provisions first apply to tax years beginning after December 31, 2024.
The Wisconsin Economic Development Corporation may certify certain nonprofits for tax benefits tied to employee child care costs. The nonprofit must be described in section 501(c)(3) of the Internal Revenue Code. Certification is optional and is limited to the tax benefits described for employee child care costs. The text says the provisions first apply to tax years beginning after December 31, 2024.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 13Failed to pass notwithstanding the objections of the Governor pursuant to Joint Rule 82Latest
- May 12Placed on calendar 5-12-2026 pursuant to Joint Rule 82 (2)(a)
- Mar 13Report vetoed by the Governor Tony Evers on 3-13-2026Major
- Mar 9Presented to the Governor on 3-9-2026 by directive of the President, pursuant to Senate Rule 44m (3)To Governor
- Feb 26Report correctly enrolledMinor
- Feb 23Received from Assembly concurred inMinor
- Feb 19Ordered immediately messaged
- Vote recorded CONCURRENCE. Result: pass.Lower
- Feb 19Read a third time and concurred in, Ayes 63, Noes 31Passed House
- Feb 19Rules suspended
- Feb 19Ordered to a third readingMinor
- Feb 19Read a second timeMinor
- Feb 18Made a special order of business at 11:14 AM on 2-19-2026 pursuant to Assembly Resolution 14
- Feb 4Referred to committee on RulesMinor
- Vote recorded Report concurrence recommended by Joint Committee on Finance, Ayes 11, Noes 4. Result: pass.Lower
- Feb 4Report concurrence recommended by Joint Committee on Finance, Ayes 11, Noes 4Minor
- Feb 3Executive action taken by joint committee on Finance
- Jan 30Withdrawn from committee on Rules and referred to joint committee on Finance pursuant to Assembly Rule 24 (3)(a)Minor
- Jan 16Read first time and referred to committee on RulesMinor
- 2025
- Nov 19Received from SenateMinor
- Nov 18Ordered immediately messaged
- Vote recorded PASSAGE. Result: pass.Upper
- Nov 18Read a third time and passed, Ayes 19, Noes 14Passed Senate
- Nov 18Rules suspended to give bill its third reading
- Nov 18Ordered to a third readingMinor
- Nov 18Read a second timeMinor
- Nov 14Placed on calendar 11-18-2025 pursuant to Senate Rule 18(1)
- Sep 19Available for scheduling
- Vote recorded Report passage recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3. Result: pass.Upper
- Sep 19Report passage recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3Minor
- Sep 18Executive action taken
- Aug 28Public hearing held
- Jul 10Representative Tucker added as a cosponsor
- Jun 25Fiscal estimate receivedMinor
- Jun 17Fiscal estimate receivedMinor
- May 30Read first time and referred to Committee on Agriculture and RevenueMinor
- May 30Introduced by Senators Marklein, Cabral-Guevara, Feyen, James, Nass and Quinn; cosponsored by Representatives Hurd, Armstrong, Behnke, Dittrich, Donovan, Green, Kaufert, Kitchens, Knodl, Kreibich, Krug, Melotik, Mursau, Novak, O'Connor, Penterman and SteffenIntroduced
Taxes & BudgetEconomy & Jobs