MON AM News: Bill would create new state tax credit for employer-sponsored child care; Legislation circulating for new ag purchase program

June 30, 2025

— Legislation being circulated by GOP lawmakers would create a new state tax credit for employer-provided child care, mirroring a federal tax credit.

Rep. Dave Armstrong of Rice Lake and Sen. Dan Feyen of Fond du Lac recently sent a cosponsorship memo to other lawmakers seeking support for the bill. They say it would be “essentially doubling” the benefit for employers in the state.

“This would provide a greater incentive for employers to invest in childcare for their employees,” they wrote.

The bill authors note employers often point to a lack of affordable child care care as “one of the primary obstacles” to hiring and retaining workers. Some businesses are now offering in-house child care to their employees or securing slots for their children at local facilities.

To support such programs, Section 45F of the Internal Revenue Code includes a nonrefundable tax credit equal to 25% of the cost of establishing or operating a child care facility for an employer’s workers, plus 10% of the costs of child care resource and referral services to these employees.

The total credit is limited to $150,000 per year, according to the memo. And the credit has a “sliding-scale clawback provision” for facilities that shut down within 10 years.

Under the legislation being circulated, anyone who’s eligible for that federal employer-provided child care credit would be able to claim a nonrefundable state income and franchise tax credit equal to the amount that recipient can claim for the federal credit. That’s according to an analysis by the Legislative Reference Bureau.

Similar to the clawback provision at the federal level, the state-level bill includes a provision that if a claimant has to repay a portion of the federal credit, that recipient must also repay an equal amount back to the state Department of Revenue, LRB notes.

“While 45F is currently not widely used, LRB 1033/3839 may increase its visibility and make it a more attractive option here in Wisconsin, benefiting employers and employees alike,” bill authors wrote in the memo.

The cosponsorship deadline is 5 p.m. today.

See the bill text.

— Dem lawmakers are seeking to create a new agricultural purchase program under DATCP, which would support food banks and other nonprofits.

Sen. Brad Pfaff of Onalaska and Rep. Jenna Jacobson of Oregon last week began circulating a cosponsorship memo for the bill, which references a delayed USDA report on the May 2025 outlook for U.S. farm goods.

“The report, vital for farmers predicting future economic conditions, was reportedly delayed due to a grim forecast: a projected record-breaking $49.5 billion trade deficit in farm goods for 2025,” bill authors wrote. “If accurate, this represents a staggering 55% increase over 2024’s deficit.”

They point to the “unprecedented economic uncertainty” facing Wisconsin farmers and say their proposed ag purchase program would create a “buffer” against losses linked to trade disruptions.

Under the bill, DATCP would establish a $30 million agricultural purchase program to provide grants for groups offering food assistance, such as food pantries and other community organizations. Recipients could use the grants to buy food that’s grown or made in the state, authors wrote in the memo.

They say the funding would help stimulate demand for local food producers facing export losses while creating a “lifeline” for state residents who rely on FoodShare, the state’s food stamps program.

“Our state cannot afford to stick its head in the sand and pretend that it’s business as usual for our $116 billion agricultural industry,” authors wrote, asking other lawmakers to join them in “providing critical support to Wisconsin’s invaluable agricultural sector and ensuring food security for our most vulnerable families.”

The legislation would also add two full-time equivalent positions at DATCP to support the proposed program.

The cosponsorship deadline is 5 p.m. July 10.

See the bill text.

— The Wisconsin Supreme Court unanimously rejected UW Health nurses’ plea for union recognition in a recent decision.

Writing the majority opinion, Justice Brian Hagedorn said the court found Act 10 stripped any collective bargaining rights UW nurses had under the Peace Act.

“When we examine the statutory language along with the statutory history, we conclude that Act 10 ended the collective bargaining requirements formerly placed on the Authority,” Hagedorn wrote in the decision, which was released Friday.

Attorneys representing Service Employees International Union, which had previously represented UW nurses, argued in February that the court shouldn’t consider statutory history when the Peace Act was clear enough in giving UW Health employees the right to collective bargaining.

The state Supreme Court rejected this notion in its decision.

Hagedorn said this argument was “simply mistaken and inconsistent with decades of statutory interpretation cases from this court.”

In a statement Friday, UW Nurses United said this decision does not deter their fight for representation.

“Our fight to restore collective bargaining rights doesn’t end in the courtroom,” UW Nurses United said in a statement. “We will continue to explore all possible pathways to restoring our full collective bargaining rights, including seeking voluntary recognition and passing legislation, to ensure that all of us, no matter who we are or where we work, have a seat at the table and a voice in our workplace.”

UW Nurses United had been represented by SEIU until Act 10, but asked again to be recognized by the UW Authority in 2019. The Wisconsin Employment Relations Commission ruled in 2022 the Peace Act no longer covered UW Health employees, and this decision was upheld by the Dane County Circuit Court last March.

UW Health celebrated the decision in a statement Friday.

“Today, the Wisconsin Supreme Court upheld the decisions of WERC and the Dane County Circuit Court, ruling that the Wisconsin Peace Act does not apply to UW Health,” UW Health said. “UW Health appreciates the court’s deliberate, diligent and final review.”

Justices Rebecca Dallet and Rebecca Bradley wrote concurring opinions.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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— Solar project installer Arch Solar has announced plans for a new location in Milwaukee that will serve as its corporate headquarters.

The company on Friday rolled out details for the project, a 14,000-square-foot facility that will house about 45% of its 150 workers. Arch Solar also plans to add 30 new jobs.

Since launching in 2003, the company has done more than 500 solar installations across Milwaukee for both residential and business projects. According to the release, its solar portfolio offsets enough carbon dioxide to equal 100,000 gas-powered cars being taken off the road.

“This strategic move reflects the growing demand for renewable energy solutions here in Milwaukee and across the state,” Vice President Jolynn Van Ginkel said in a statement.

See the release.

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