Workforce housing and childcare awards under the business development tax credit, the official text

2025 - 2026 LEGISLATURE
LRB-1836/1
MDE&KP:skw

2025 ASSEMBLY BILL 280
May 30, 2025 - Introduced by Representatives Armstrong, Behnke, Dittrich, Gundrum, Kaufert, Kitchens, Kreibich, Melotik, Moses, O'Connor, Sheehan and VanderMeer, cosponsored by Senators Feyen, Marklein, Dassler-Alfheim, Habush Sinykin and Spreitzer. Referred to Committee on Ways and Means.

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.

Analysis by the Legislative Reference Bureau
This bill makes adjustments to the workforce housing investment and child care investment awards under the business development tax credit. Under current law, a person may claim tax benefits of an amount equal to up to 15 percent of the person’s investment in workforce housing for employees and up to 15 percent of the person’s investment in establishing an employee child care program for employees. Under current law, such investments may only include capital expenditures made by the person. Under the bill, the investments in workforce housing and child care for which a person may receive tax benefits may include contributions made to a third party for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving loan fund program. The bill also removes the requirement that the workforce housing and child care program for which a person may receive tax benefits for investing in be for employees.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 71.07 (3y) (b) 6. of the statutes is amended to read:
71.07 (3y) (b) 6. For taxable years beginning after December 31, 2023, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and the amount of the investment in establishing an employee a child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation. For purposes of this subdivision, investments include capital expenditures made by the claimant and contributions made by the claimant to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving fund loan program.
Section 2. 71.28 (3y) (b) 6. of the statutes is amended to read:
71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and the amount of the investment made in establishing an employee a child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation. For purposes of this subdivision, investments include capital expenditures made by the claimant and contributions made by the claimant to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving fund loan program.

Section 3. 71.47 (3y) (b) 6. of the statutes is amended to read:
71.47 (3y) (b) 6. For taxable years beginning after December 31, 2023, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and the amount of the investment made in establishing an employee a child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation. For purposes of this subdivision, investments include capital expenditures made by the claimant and contributions made by the claimant to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving fund loan program.
Section 4. 238.308 (4) (a) 6. of the statutes is amended to read:
238.308 (4) (a) 6. For taxable years beginning after December 31, 2023, an amount equal to up to 15 percent of the person’s investment in workforce housing, as defined in s. 234.66 (1) (i), for employees and up to 15 percent of the person’s investment in establishing an employee a child care program for employees. Such investments may include only capital expenditures made by the person and contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving loan fund program.
Section 5. Initial applicability.
(1) This act first applies to taxable years beginning on January 1, 2025.
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