MADISON, Wis. (WRN / AP) Some help for Wisconsin parents paying for childcare. Governor Tony Evers on Monday signed into law an expansion of the tax credit available to filers with children and dependents.
“These changes will give parents some breathing room in their household budgets, helping folks to remain in our state’s workforce,” Evers said.
The Democratic governor said that’s great as far as it goes, but that more needs to happen.
“We do need to have something that goes directly to the provider, as simple as that.”
The bill Evers signed expands the state child care tax credit to 100% of the claimants’ federal child care tax credit. Currently filers can claim only 50% of the federal credit on state taxes. The amount of maximum eligible expenses under the state credit would grow from $3,000 to $10,000 for one qualifying dependent and from $6,000 to $20,000 for two or more dependents.
According to an estimate from the governor’s office, the average benefit will be over $656 per filer. The childcare industry is struggling even as the average cost now exceeds that of tuition at UW Madison.