AB 283

Under current law, a business may receive a refundable business development tax credit for an amount equal to up to 15 percent of the business’s investment in establishing an employee child care program for employees. Such investments may include only capital expenditures made by the person. Because the credit is refundable, if the credit exceeds the claimant’s tax liability, the claimant will receive the difference as a refund check.

Under this bill, a business may receive a credit for an amount of up to 15 percent of the business’s costs incurred to provide child care services for employees. “Costs incurred to provide child care services for employees” includes capital expenditures made to establish a child care program for employees, expenditures for the operation of a child care program for employees, expenditures to reimburse employees for child care expenses, expenditures to purchase or reserve child care slots on behalf of employees, contributions made by an employer to an employee’s dependent care flexible spending account, and any other cost or expense incurred due to a benefit provided by an employer to facilitate the provision or utilization by employees of child care services.

The bill also provides that the Wisconsin Economic Development Corporation may certify a nonprofit entity described under section

501

(c) (3) of the Internal Revenue Code for the business development tax credit for expenditures on providing child care services to employees.