Governor Evers Signs Bill to Expand Wisconsin’s Child Care Tax Credit

Governor Tony Evers signed a bill into law Monday that will expand the state’s tax credit for child care expenses.

The measure signed by Evers will allow Wisconsinites to claim up to 100 percent of the federal tax credit for child and dependent care on their state taxes starting in the 2024 tax year.

Previously, state filers could only claim 50 percent of the federal income tax credit, which applies to money spent on care for a child under 13 or on care for a disabled person.

The changes will increase the maximum credit a Wisconsin filer could claim from $525 to $3,500 for a single dependent, and from $1,050 to $7,000 for multiple dependents.

The changes will affect more than 110,000 taxpayers, with an average benefit of over $656, according to the Governor’s Office.

In a statement, Evers called the cost of quality child care “too darn high,” and said the credit is one step toward keeping parents in Wisconsin’s work force.

“Signing this bill today will go a long way toward defraying yearly family expenses on child care, giving Wisconsinites some breathing room in their household budgets and making sure our kids have the early support and care they need,” the governor said in written statement, following a Monday morning ceremony at La Casa de Esperanza, a community center and charter school in Waukesha.

The expanded credit, which received bipartisan support from state lawmakers, will cost the state an estimated $73 million in revenue in the 2025 fiscal year, according to Wisconsin’s Legislative Fiscal Bureau.