An Act to amend 71.07 (3y) (b) 6., 71.28 (3y) (b) 6., 71.47 (3y) (b) 6. and 238.308 (4) (a) 6. of the statutes; Relating to: workforce housing and childcare awards under the business development tax credit. (FE)
Summary
AB280 amends several Wisconsin tax credit provisions to expand and clarify the business development tax credit for investments in workforce housing and employee childcare. Under the bill, eligible investments include capital expenditures and contributions to third parties that build or rehabilitate workforce housing or establish childcare programs, including contributions to local revolving loan funds. The bill caps the creditable amount at up to 15 percent of the qualifying investment for both workforce housing and childcare-related investments.
The changes apply to taxable years beginning after December 31, 2023, with initial applicability beginning January 1, 2026. The bill updates multiple tax code sections covering individual and corporate income/franchise taxes and the business development tax credit statute, and it ties administration of the credit to determinations made by the Wisconsin Economic Development Corporation. In practical terms, it broadens the types of expenditures that can qualify and reinforces the use of tax incentives to encourage employer-supported housing and childcare development.
Impact
The bill amends sections 71.07, 71.28, 71.47, and 238.308 of the Wisconsin statutes, affecting income and franchise tax treatment as well as the business development tax credit. It expands the scope of qualifying investments for workforce housing and employee childcare programs, potentially increasing the number and size of claims businesses can make under these credits. Employers, developers, and third-party entities involved in housing or childcare projects may benefit from additional tax incentives, while the Wisconsin Economic Development Corporation retains a role in determining eligible investments.
Sentiment
The bill appears to have been broadly supported. It passed the Assembly 92-4 and the Senate 33-0, indicating strong bipartisan approval and little recorded opposition. The absence of committee transcript material limits insight into detailed debate, but the overwhelming vote margins suggest the bill was viewed favorably as a workforce and economic development measure.
Contention
There is little evidence of major contention in the available record. The main policy questions likely concern the use of tax credits to subsidize employer-related housing and childcare investments, the 15 percent cap on eligible investments, and the inclusion of contributions to third-party builders or revolving loan funds. Any disagreement would likely center on fiscal cost, program design, or whether the credit sufficiently targets workforce needs, but the recorded votes suggest those concerns did not generate significant opposition.
Crossfiled
An Act to amend 71.07 (3y) (b) 6., 71.28 (3y) (b) 6., 71.47 (3y) (b) 6. and 238.308 (4) (a) 6. of the statutes; Relating to: workforce housing and childcare awards under the business development tax credit. (FE)