AB660,,1 2023 ASSEMBLY BILL 660

November 9, 2023 - Introduced by Representatives Armstrong, Hurd, Brandtjen, Dittrich, Edming, Green, Gundrum, Kitchens, Magnafici, Maxey, Michalski, Mursau, Novak, O’Connor, Penterman, Rettinger, Schraa and Snyder, cosponsored by Senators Feyen, Cabral-Guevara, Knodl, Quinn and Nass. Referred to Committee on Ways and Means.

AB660,,2 An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2) (et), 71.05 (6) (a) 30., 71.07 (8s), 71.21 (8), 71.26 (3) (hi), 71.28 (8s), 71.45 (2) (a) 25. and 71.47 (8s) of the statutes; relating to: creating a tax credit for employer child care programs and making an appropriation.

AB660,,3 Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit for businesses that operate a child care program for their employees’ children. The credit is equal to the amount of capital expenditures incurred in establishing an employee child care program, the amount of certain organization and administration expenses incurred, and the amount of contributions made to a charitable organization for the purpose of establishing an employee child care program. The maximum total credit that may be claimed in a taxable year based on those capital expenditures, organization and administration expenses, and contributions is $100,000. A person may also claim as a credit the amount of operating expenses of an employer child care program, the amount of payments made directly to a child care program in the name of and for the benefit of an employee, and the amount of certain administrative costs. The maximum total credit that may be claimed in a taxable year based on those operating expenses, direct payments, and administrative costs is $3,000 for each child of an employee participating in the child care program. The credit under the bill is refundable, which means that if the credit exceeds the claimant’s tax liability, the claimant will receive the difference as a refund check.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AB660,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB660,1 Section 1. 20.835 (2) (et) of the statutes is created to read:

AB660,,6 20.835 (2) (et) Employer child care program credit. A sum sufficient to make the payments under ss. 71.07 (8s) (d) 2., 71.28 (8s) (d) 2., and 71.47 (8s) (d) 2.

AB660,2 Section 2. 71.05 (6) (a) 15. of the statutes is amended to read:

AB660,,8 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g).

AB660,3 Section 3. 71.05 (6) (a) 30. of the statutes is created to read:

AB660,,10 71.05 (6) (a) 30. The amount contributed to a nonprofit entity that is deducted under the Internal Revenue Code as a charitable contribution and that is used to calculate a credit under s. 71.07 (8s).

AB660,4 Section 4. 71.07 (8s) of the statutes is created to read:

AB660,,12 71.07 (8s) Employer child care program credit. (a) Definitions. In this subsection: