What's Happening?
Governor Tony Evers of Wisconsin has signed Assembly Bill 280, now Act 78, which expands incentives for businesses to invest in workforce housing and childcare. Introduced by State Representative Dave Armstrong, the bill clarifies and broadens tax credit
eligibility, allowing businesses to invest in these areas more flexibly. The legislation addresses concerns that previous interpretations of the Business Development Tax Credit were too narrow, limiting the types of qualifying investments. Act 78 now permits businesses to make contributions to third parties for building workforce housing or establishing childcare programs, including contributions to local revolving loan funds.
Why It's Important?
The signing of Act 78 is a significant step towards addressing the critical need for affordable housing and childcare in Wisconsin. By expanding tax credit eligibility, the bill encourages businesses to invest in these essential services, which are vital for economic growth and workforce stability. The legislation aims to alleviate the challenges faced by workers who struggle to find affordable housing and reliable childcare, thereby enhancing their ability to participate in the workforce. This initiative is expected to benefit both businesses and working families, as it provides more flexibility for companies to support their employees and communities.
What's Next?
With the implementation of Act 78, Wisconsin businesses are expected to increase their investments in workforce housing and childcare. This could lead to the development of new housing projects and childcare facilities, improving access to these essential services for workers across the state. The expanded tax credits may also attract more businesses to participate in these initiatives, further boosting economic development. Policymakers and economic development leaders will likely monitor the impact of the legislation to assess its effectiveness and explore additional measures to support housing and childcare needs in the future.
