Republicans Propose Flexible Tax Credit for Child Care, Housing Investments

Republican lawmakers at both state and federal levels are considering or enacting changes to tax credit programs aimed at supporting child care and working families. In Wisconsin, proposed legislation would make state tax credits more flexible, allowing businesses to receive credits for investments in workforce housing and child care, even if contributions are made to third parties or local programs, rather than requiring direct ownership. Meanwhile, North Dakota has adopted a new employer tax credit that covers 50% of employer contributions toward employee child care, aiming to address workforce shortages and support working parents. These efforts reflect broader Republican interest in expanding family-oriented tax credits, including the federal child tax credit, which party leaders see as crucial for appealing to families and maintaining political support. However, expanding such credits faces opposition from fiscal conservatives concerned about budget deficits and the need to offset the cost of expanded benefits. Policymakers are monitoring the effectiveness of these programs as they seek to balance economic growth with support for working families.