Guest Column: Legislature Continues to Tackle Key Economic Development Policies

By Senator Dan Feyen (R-Fond du Lac) 

Economic Development at the state level is a constant flow of problem solving and incentive building, attempting to create the healthiest ecosystem for business growth and investment. In other words, the job of economic development is never finished.

In this legislative session, I am tackling some existing programs that need fixes and some new programs that can help move our economy forward.

Wisconsin’s Historic Preservation Tax Credit is an important tool in maintaining and rehabilitating buildings in Wisconsin. Preserving these historic structures helps to support the heritage, character, and aesthetics of our state while ensuring these properties continue to contribute to local communities and economic development. SB 382 updates this credit to make it more accessible and aligned with current needs. It keeps the $50,000 minimum investment but removes certain restrictions, allowing projects to qualify for the state credit even if they don’t meet federal requirements. This bill simplifies the approval process by removing the need for federal recommendation when only the state credit is claimed and allows the full credit to be taken in one year instead of being spread over five. The bill also sunsets credits for non-historic structures and adjusts the project cap. Currently, all parcels are capped at $3.5 million in credits over the lifetime of the building. This bill changes that cap to $3.5 million in credits over a 10-year period.

Another developmental tool is the Business Development Tax Credit. Last session, I worked hard to get modifications to this credit passed through 2023 Act 143. That bill shifted the credits focus from job retention to capital expenditures. It also added business investments into childcare and workforce housing as qualified expenditures. Childcare and housing repeatedly come up as two of the main obstacles employers face in recruiting and retaining qualified workers.

This session, SB 286 fixes an unintended interpretation of Act 143 by removing the requirement that businesses must own the workforce housing or childcare programs for their investments to qualify. It also eliminates the restriction that investments must only benefit employees, opening the door for projects that support entire communities. In addition, the bill recognizes contributions to local revolving loan funds as eligible investments, helping communities pool resources to expand childcare and workforce housing, providing greater flexibility, and encouraging more business-led investments across Wisconsin.

Another way we can address childcare is to mirror incentives the Federal government is providing. SB 376 creates a Wisconsin employer-provided childcare tax credit that mirrors the federal IRC 45f credit. The bill encourages businesses to either establish in-house childcare or partner with local providers by offering a state credit on top of the federal one, effectively doubling the benefit. Recent federal changes increased the credit percentage and caps, and this proposal ensures Wisconsin businesses can take full advantage.

On top of these efforts, I am currently in the process of getting additional bills introduced that should be a boost to housing developments in Wisconsin. The work of bolstering our economy is never done and I will continue to work on legislation that will help Wisconsin remain business-friendly and promote economic growth.