Wisconsin Assembly Bill AB660

Wisconsin 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23
• Report Pass: 2/7/24
• Refer: 2/7/24
• Failed: 4/15/24

Caption

Creating a tax credit for employer child care programs and making an appropriation. (FE)

Impact

The implications of AB660 are significant as it offers financial incentives for businesses to invest in child care services for their employees, potentially increasing workforce satisfaction and retention. By providing a reliable child care option, employers can help alleviate some of the childcare burdens facing working families. If enacted, the law may change how employee benefits are structured and perceived; businesses might adopt or enhance their child care offerings to take advantage of the associated tax credits.

Summary

Assembly Bill 660 introduces an income and franchise tax credit aimed at businesses that operate child care programs for the children of their employees. This bill allows employers to claim various forms of credits, including those for capital expenditures that were necessary to establish these programs, administrative costs, and contributions made to nonprofit entities for creating child care facilities. The total credit amount is capped at $100,000 for qualifying capital expenditures and up to $3,000 per child for operational expenses under the child care program.

Contention

However, the bill may face some contentious points. Criticism may arise around the idea that not all businesses, particularly smaller ones, can afford to establish child care programs, thus potentially widening the gap between larger and smaller employers in terms of employee benefits. Further, there could be concerns regarding the criteria set for compliance and the scrutiny involved in demonstrating adherence to these standards. Thus, while the intent is to promote child care provisions, the practical implementation could result in a complex landscape for businesses.