New Law Expands Tax Credit for Workforce Housing & Childcare

In December, Governor Evers signed Assembly Bill 280 into law as 2025 Wisconsin Act 78, expanding and clarifying Wisconsin’s Business Development Tax Credit (BTC) to support employer investments in workforce housing and childcare. This legislation was supported by the Alliance, and we registered in favor of the bill.

Under the new law, businesses may claim a 15% tax credit not only for direct capital investments, but also for contributions to qualified third-party partners that build or rehabilitate workforce housing or establish childcare programs. Eligible third parties include nonprofit housing developers, regional workforce housing or social impact funds, and local revolving loan funds that pool employer resources to address community needs.

Importantly, Act 78 removes prior restrictions requiring projects to serve only a company’s own employees. Employers may now invest in community-wide housing and childcare solutions, allowing them to partner with experienced local organizations without owning or operating the facilities themselves. The changes take effect for taxable years beginning January 1, 2026 and are intended to help employers attract and retain talent by addressing two of the most significant barriers to workforce participation. For more information, contact Will Neitzel.