Republican lawmakers have proposed offering state tax breaks to Wisconsin businesses that help employees afford child care, according to Wisconsin Public Radio. The refundable tax credits would apply to businesses that help employees pay for outside providers or start their own day cares for workers’ children. The legislation is aimed at increasing the state’s workforce participation.
A credit of up to $100,000 to help businesses with the startup costs of establishing a day care program for employees’ children is included in the bill. The credit could be used for capital expenses or lease or mortgage payments. Businesses could also use the credit to pay an outside nonprofit to create a day care program.
The bill additionally proposes a credit of up to $3,000 per child to cover the operating and administrative costs of employee child care. Those payments could be made to an in-house day care or an outside provider. Employers would be eligible for the additional per-child credit only if they covered at least half of employees’ child care costs.
The Wisconsin proposal would be more expansive than the federal tax credit that already applies to employers providing child care or helping to cover its cost.
