Wisconsin Assembly Bill AB369

Wisconsin 2025-2026 Regular Session

• Introduced: 7/17/25
• Refer: 7/17/25
• Report Pass: 9/15/25
• Refer: 9/15/25
• Refer: 1/30/26
• Report Pass: 2/4/26
• Refer: 2/4/26
• Refer: 2/13/26
• Failed: 3/23/26

Caption

An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and 71.45 (2) (a) 10.; to create 71.07 (8s), 71.10 (4) (cu), 71.28 (8s), 71.30 (3) (cu), 71.47 (8s) and 71.49 (1) (cu) of the statutes; Relating to: a tax credit for employer-provided child care. (FE)

Summary

AB369 creates a new Wisconsin income and franchise tax credit tied to the federal employer-provided child care credit under section 45F of the Internal Revenue Code. For taxable years beginning after December 31, 2024, an eligible claimant may claim a nonrefundable state credit equal to the amount of the federal credit claimed on the federal return, up to the amount of Wisconsin tax otherwise due. The bill applies the credit across the individual income tax, corporate income and franchise tax, insurance company franchise tax, and tax-option corporation/partnership pass-through structures by adding parallel provisions in the relevant chapters of the statutes. The credit is limited to expenditures for child care facilities or services located in Wisconsin; it cannot be claimed for out-of-state facilities or services. The bill also mirrors the federal recapture rule: if a taxpayer must repay part of the federal employer-provided child care credit because the child care facility stops operating within 10 years, the taxpayer must also repay an equivalent amount to the Wisconsin Department of Revenue. Administrative provisions for the credit are incorporated by reference to existing state credit administration rules.

Impact

AB369 would amend multiple sections of Wisconsin tax law to conform state tax treatment to the federal employer-provided child care credit and to add a new state credit for eligible taxpayers. It would affect individual taxpayers, corporations, partnerships, limited liability companies, tax-option corporations, and insurance companies by allowing the credit against the applicable state tax and by adjusting pass-through and add-back rules so the credit is properly accounted for in entity-level and owner-level taxation. The bill would also create new statutory cross-references for administration and reporting of the credit.

Sentiment

The bill appears to have been generally supportive in concept, as it was introduced by a sizable bipartisan group of Assembly and Senate cosponsors and was framed as a child care and business-support measure. However, the available record shows no committee transcript or recorded votes, and the bill ultimately failed to pass pursuant to Senate Joint Resolution 1. That suggests the proposal did not advance far enough to generate a documented floor debate or formal vote history in the materials provided.

Contention

The main policy issue is whether Wisconsin should subsidize employer investment in child care through a tax credit that mirrors the federal credit. Supporters would likely view the measure as encouraging employers to expand child care access and helping workers with child care needs, while critics may question the fiscal cost, the benefit to employers with sufficient tax liability to use a nonrefundable credit, and whether the credit should be limited to in-state facilities. The recapture provision and the restriction to Wisconsin-based expenditures indicate an effort to target the incentive and protect state revenue, but no direct objections or amendments are shown in the provided record.