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
SB286 would expand the types of investments that qualify for certain workforce housing and child care tax credit awards under Wisconsin’s business development tax credit program. Under current law, the credit is tied to capital expenditures for workforce housing and employee child care programs, generally up to 15% of the qualifying investment. The bill would allow qualifying investments to include not only direct capital expenditures by the taxpayer, but also contributions to third parties that build or rehabilitate workforce housing or establish child care programs, including contributions to local revolving loan fund programs.
The bill also broadens eligibility by removing the requirement that the housing or child care program be specifically for employees. It amends multiple tax provisions governing the individual income tax and corporate/franchise tax credit structures, as well as the business development tax credit statute, and applies first to taxable years beginning on January 1, 2025. In practical terms, the bill would make it easier for businesses and other claimants to support housing and child care projects through indirect financing arrangements and to receive state tax benefits for doing so.
Impact
SB286 would amend several sections of the Wisconsin statutes governing tax credits for workforce housing and child care investments, including ss. 71.07, 71.28, 71.47, and 238.308. The bill would expand the definition of qualifying investments to include contributions to third-party developers or program operators and local revolving loan funds, not just direct capital expenditures by the claimant. It would also remove the employee-specific limitation, potentially broadening the pool of housing and child care projects eligible for credit awards and affecting taxpayers, employers, developers, and local financing entities involved in these projects.
Sentiment
The bill appears generally supportive of housing and child care development incentives, with a policy focus on making the tax credit more flexible and usable. The available record shows no committee transcript debate or recorded votes, and the bill ultimately failed to pass pursuant to Senate Joint Resolution 1. Based on the bill’s sponsorship and subject matter, the overall sentiment seems favorable toward expanding economic development tools, though the lack of recorded discussion limits how strongly support or opposition can be characterized.
Contention
The main policy issues likely concern the scope of eligible investments and the removal of the employee-only requirement. Supporters would likely view the bill as a practical way to channel private investment into workforce housing and child care through third-party partnerships and revolving loan funds, while critics may worry that broadening eligibility could increase tax expenditures, reduce targeting to employees, or create less direct accountability for how the credits are used. Because there were no committee transcripts or votes provided, specific named opponents or supporters are not identified in the record.
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)