WEDA Members Testify at State Capitol on Key Legislation to Strengthen Wisconsin’s Workforce  

Over the past few weeks, two key legislative committees held public hearings on legislation (AB 280 / SB 286) that would make small yet significant changes to the state’s business development tax credit to make it easier and more attractive for businesses to invest in housing and childcare projects that benefit entire communities. The bill is a top WEDA legislative priority.

On Aug. 21, WEDA members Angel Laidlaw (Centergy) and Joe Venhuizen (Envision Greater Fond du Lac) testified with WEDA’s lobbyist on Assembly Bill 280 before the Assembly Ways and Means Committee. Both did a tremendous job, successfully explaining the need for the legislation and telling lawmakers about the workforce challenges they encounter in their communities. WEDA would like to thank Angel and Joe for taking time out of their busy schedules and lend their expertise and talents to our advocacy efforts.

Assembly Bill 280 (and the Senate version – SB 286) would enhance the housing and childcare tax credit incentives under the Business Development Tax Credit (BTC) Program to encourage greater workforce housing and childcare investment by Wisconsin businesses. The bill 

would allow BTC investments in workforce housing and childcare to include contributions made by eligible businesses to a third party for those purposes. By expanding eligibility beyond capital expenditures, the bill gives employers the flexibility to make creative, community-oriented investments in partnership with local organizations. The legislation would also allow workforce housing development and childcare programs driven by the tax incentives to benefit entire communities rather than just the employees of BTC eligible companies. Ultimately, the legislation will help address two pressing economic development challenges and strengthen the state’s workforce. Please CLICK HERE to review WEDA’s official testimony on the legislation. 

WEDA would also like to thank Sadie Howell (Envision Greater Fond du Lac), another member who traveled to Madison on Aug. 28 to testify in favor of the Senate version of the BTC bill (SB 286) before the Senate Agriculture and Revenue Committee. Sadie provided impactful testimony, and like Joe and Angel the week prior, she was a great representative of WEDA and the economic development community.

WEDA President and CEO Melissa Hunt was also in attendance at the Senate hearing.

At the same hearings before the Assembly Ways and Means Committe (Aug. 21) and Senate Agriculture and Revenue Committee (Aug. 28), WEDA registered in support of the following bills heard by the committees:

  • Assembly Bill 375 / Senate Bill 382 – This legislation would enhance the state Historic Preservation Tax Credit (HTC) program, which is a proven economic development tool that has boosted Wisconsin’s ability to attract capital investment, create jobs, boost tourism, and revitalize Mainstreet’s and downtowns in communities across the state. The bill would make several changes to the current program, including a provision to “decouple” the state HTC program from the federal HTC for projects only applying for the state tax credit. This will allow smaller projects in smaller communities to more easily qualify for the state tax credit. More specifically, the legislation would make the following changes to current law:
    • Eliminates the federal expenditure requirement for the state credit, while keeping Wisconsin’s more straightforward $50,000 minimum expenditure threshold. This critical provision would expand tax credit access for smaller historic preservation projects, both in rural and urban parts of the state that are only applying for the state tax credit.
    • Increases the economic impact of the state HTC by allowing the full state tax credit to be claimed in a single year rather than spread across five years, as required under federal law.
    • Eliminates the provision that requires projects only applying for the state HTC to obtain approval from the U.S. Secretary of the Interior. These projects would still require approval from the State Historic Preservation Officer.
    • Maintains the current $3.5 million state HTC cap on projects undertaken on the same parcel of land. However, it would modify the cap so projects on the same parcel can reapply for the credit every 10 years if new restoration is taking place. This change would allow for longer term investments in key historic preservation projects.
  • Assembly Bill 369 / Senate Bill 376 – This legislation would allow those eligible to claim the federal employer-provided childcare credit to claim a nonrefundable state income tax credit equal to the amount the person may claim for the federal employer-provided childcare credit. Under current federal law, a person may claim a federal employer-provided childcare tax credit of up to 25 percent of qualified childcare expenditures associated with acquiring or constructing a childcare facility and 10 percent of qualified childcare resource and referral expenditures, up to a maximum credit of $150,000.

The Assembly Ways and Means Committee has scheduled a vote on all three bills referenced above for Sept. 4, and we are optimistic the Senate committee will follow suit in the near future. The WEDA Government Affairs Team will continue to work to advance these important bills through the legislative process. UPDATE: Please note that earlier this month, all three bills listed above were passed by committees in both the Assembly and Senate and are now available for a full vote before the Legislature.