Gov. Evers has vetoed a Republican bill that would have expanded the Business Development Tax Credit.
Gov. Tony Evers vetoed a Republican-backed bill that would have expanded a tax credit to help businesses offset child care costs for employees. Evers rejected Senate Bill 291, which sought to broaden the Business Development Tax Credit to allow employers and nonprofits to claim up to 15% of qualifying child care expenditures.
Republicans argued the legislation would encourage more businesses to support child care, making it easier for families to afford quality options without new government spending or mandates.
In his veto message, Evers called the bill too broad and vague, claiming it could lead to fraud and abuse while failing to deliver “direct, sustainable” investments in the child care industry. Critics on the right countered that Evers’ preference for government-centric solutions ignores the power of tax incentives to spur private-sector innovation and relief.
The veto comes as Wisconsin families continue to grapple with high child care costs that strain household budgets and force many parents — especially mothers — out of the workforce. Conservative lawmakers have long pushed market-based approaches like tax credits to empower businesses and families rather than expand bureaucratic programs favored by Democrats.Republicans in the Legislature passed the measure as part of efforts to promote economic growth and family stability.
Supporters say the credit would have rewarded employers who invest in their workers’ families, helping attract and retain talent in a tight labor market.
The bill now returns to the Legislature, where Republicans hold majorities but lack the votes to override the veto.
