Wisconsin Senate Bill SB623

Wisconsin 2023-2024 Regular Session

• Introduced: 11/7/23
• Refer: 11/7/23
• Failed: 4/15/24

Caption

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

Impact

If passed, this bill would significantly alter the landscape of employee benefits in Wisconsin by providing financial support for businesses that take on the responsibility of child care services. This could lead to increased accessibility to child care for employees, thus promoting better work-life balance and potentially influencing hiring and retention within companies. The refundable nature of the credit means that businesses could receive a cash refund if the credit exceeds their tax liability.

Summary

Senate Bill 623 introduces a tax credit aimed at businesses that establish child care programs for their employees' children. This credit is designed to cover qualifying capital expenditures, related organization and administration expenses, and contributions to charitable entities that facilitate setting up these child care programs. The maximum credit available is $100,000 per taxable year, incentivizing businesses to invest in child care resources for their workforce.

Contention

There are concerns regarding the potential limitations on eligibility for the credit. For instance, partnerships, limited liability companies, and tax-option corporations are excluded from claiming this tax benefit, which might limit the participation of smaller organizations that could also benefit from providing child care support. Additionally, compliance requirements may restrict some entities from accessing the credit, thereby limiting its overall effectiveness in encouraging widespread adoption of child care programs.