WeVote
Log In

Bill

Bill

AB 280

Relating to: workforce housing and childcare awards under the business development tax credit. (FE)

2025-2026 Regular Session Introduced by Dave Armstrong and 11 co-sponsors

AB 280 lets businesses claim tax credits for third-party contributions to workforce housing or child care projects, not just direct investments for employees.

Presented to the Governor on 12-4-2025
0
WeVote Research Nonpartisan
Bill Summary · AB 280

Summary — AB 280 (LRB‑1836/1): Workforce housing and childcare awards under the business development tax credit

Main purpose
AB 280 expands what counts as an eligible investment for two components of Wisconsin’s business development tax credit — (1) workforce housing and (2) employer child care programs — to encourage private contributions that support housing and child care capacity. The bill broadens eligible expenditures and removes the requirement that those investments exclusively benefit a business’s employees.

Key provisions

  • Expands the definition of eligible “investments” for the business development tax credit to include:
    • Capital expenditures made directly by the claimant (unchanged); and
    • Contributions by the claimant to a third party responsible for building or rehabilitating workforce housing or establishing a child care program — explicitly including contributions to a local revolving loan fund program.
  • Removes the statutory requirement that workforce housing and child care programs receiving qualifying investments be solely for the business’s employees. Investments may now support broader beneficiary populations.
  • Leaves intact the statutory percentage limits on credit awards: up to 15% of the claimant’s qualifying investment in workforce housing and up to 15% for establishing a child care program (as determined/allocated by WEDC).
  • Amends provisions in multiple tax-code sections (e.g., 71.07, 71.28, 71.47, and 238.308) to reflect these changes.
  • Initial applicability / effective date:
    • Original bill text applied to taxable years beginning January 1, 2025.
    • Assembly Amendment 1 (adopted later in process) changed the effective date to taxable years beginning January 1, 2026.

Who is affected

  • Businesses (claimants) eligible for Wisconsin’s business development tax credit that invest in workforce housing or child care: can now claim credits for third‑party contributions as well as direct capital expenditures.
  • Third‑party developers, community organizations, and local revolving loan funds that receive contributions for housing/child care projects may see increased private funding sources.
  • Wisconsin Economic Development Corporation (WEDC): continues to administer and allocate credits under existing statutory limits.
  • No direct limitation that project benefits must be targeted to a company’s employees — communities and broader populations may benefit.

Fiscal and administrative effects

  • State fiscal estimates (Department of Revenue / DOA): the bill does not change statutory credit caps; fiscal notes indicate no direct state fiscal effect (no increase in the aggregate amount of credits WEDC may allocate). The Department of Revenue noted limited or absorbable administrative impacts.
  • Practical effect depends on how WEDC allocates existing credit capacity among applicants under the broadened eligibility.

Procedural status (selected milestones)

  • Introduced: May 30, 2025.
  • Assembly Amendment 1 (changed effective date to taxable years beginning Jan. 1, 2026) adopted in committee (Aug 26, 2025); amendment reported Sept. 4, 2025.
  • Passed Assembly and Senate actions in late 2025; recorded as presented to the Governor on December 4, 2025.

Potential impacts and considerations

  • Policy intent: to mobilize private capital for workforce housing and child care by making it easier for businesses to obtain tax incentives when supporting third‑party projects or local lending programs.
  • Expected outcomes: may increase contributions to community housing/child care projects beyond employer‑only facilities, accelerate rehabilitation/building projects, and support local revolving loan funds.
  • Considerations: because total statutory credit capacity is unchanged, expanding eligible uses could shift how existing credit allocations are distributed across applicants; actual budgetary impact depends on WEDC award decisions and claimant behavior.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.