Gov. Evers signs bill reducing annual child care costs for Wisconsin families

Evers’ office says Wisconsin parents and guardians paying for care will see an average benefit of $656 per filer.

Starting 2025, Wisconsin parents will see more money in their pocket for childcare. On Monday, March 4, 2024, Gov. Tony Evers signed legislation significantly increasing the current childcare tax credit for families.

“I’m signing Senate Bill 1023 to expand our state’s child and dependent care tax credit and reduce the burden on families struggling with the high cost of child care,” said Evers in a press conference at La Casa de Esperanza in Waukesha.

One of the biggest reasons why the governor and his administration say they support child tax credits, it’s now more expensive to send your kid to daycare than it is to college through the University of Wisconsin system.

“The cost of daycare in 2021, on average, was $13,572,” said Peter Barca, Secretary of the Department of Revenue. “The cost for undergraduate tuition at UW Madison, which is more expensive than the others, is $10,766.”

The new law means the average benefit with go up significantly.

For example, a single parent with an income of $75,000 dollars a year and $5,000 in child care expenses would see their credit go from $300 a year to $1,000. A couple making $150,000 a year, spending $15,000 in child care for two kids, their credit could increase by 5, going from $600 credit now to about $3,000 per year.

The governor’s office said this chance will provide tax relief to over 110,000 Wisconsin taxpayers at an average benefit of more than $656 per filer.