Wisconsin Senate Bill SB376

Wisconsin 2025-2026 Regular Session

• Introduced: 7/16/25
• Refer: 7/16/25
• Report Pass: 9/19/25
• Engrossed: 11/18/25
• Refer: 1/16/26
• Refer: 1/30/26
• Refer: 2/4/26
• Refer: 2/13/26
• Enrolled: 3/23/26
• Chaptered: 4/6/26
• Passed: 4/6/26

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

SB 376 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, a taxpayer who qualifies for and claims the federal credit may claim a nonrefundable state credit equal to the amount of the federal credit, limited to the amount of Wisconsin tax otherwise due. The bill applies the credit across Wisconsin’s individual income tax, corporate income/franchise tax, partnership pass-through rules, tax-option corporations, and insurance company taxation provisions by adding corresponding cross-references and administrative provisions. The bill also limits the state credit to expenditures for child care facilities or services located in Wisconsin, and it requires a taxpayer to add back to Wisconsin tax liability any amount of federal recapture or increase in federal tax that occurs under the federal child care credit rules. In effect, the bill mirrors the federal incentive at the state level while aligning Wisconsin’s recapture treatment with federal law. The legislation is framed as a tax policy measure to encourage employer investment in child care access and infrastructure.

Impact

The bill amends multiple sections of Wisconsin’s tax code to recognize a new refundable? No—nonrefundable employer-provided child care credit for individuals, corporations, pass-through entities, tax-option corporations, and insurers. It creates new statutory sections in chapters 71.07, 71.28, and 71.47, and corresponding pass-through and add-back provisions in chapters 71.05, 71.21, 71.26, 71.34, 71.45, and 71.49. The practical effect is to reduce Wisconsin tax liability for eligible employers that invest in child care facilities or referral services, while preserving state revenue through nonrefundable limits and recapture/add-back rules.

Sentiment

The available voting history shows strong bipartisan support and no recorded opposition in the Senate, where the bill passed 33-0 and later 32-1 on concurrence with Assembly Substitute Amendment 1. The Assembly also passed the bill overwhelmingly, 94-4, indicating broad agreement on the policy goal of encouraging employer-provided child care. No committee transcript is available here, but the vote margins suggest the bill was generally viewed favorably across both chambers.

Contention

There is little evidence of major controversy in the available record. The main policy choices embedded in the bill are the nonrefundable structure, the restriction to Wisconsin-based child care expenditures and services, and the federal recapture conformity rule. Any disagreement likely centered on fiscal cost, administrative complexity, or whether the state should mirror the federal credit dollar-for-dollar, but the near-unanimous votes indicate those concerns did not prevent broad legislative support.