Wisconsin Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
Federal 45F Credits + Partner Up! Grants = Up to 90% Savings!
The 2026 Wisconsin Stack: Grants + Credits
💡 Wisconsin is a "Grant State" - Even BETTER Than Tax Credits!
Don't settle for a 40% tax credit. Get a 75% Grant from the State of Wisconsin via Partner Up! The state pays cash upfront—no waiting until tax season!
Claim 40% (Large) or 50% (Small Business) of qualified child care expenses.
State pays ~75% of purchased slot costs. Cash upfront, not a tax credit!
⚠️ Grants Run Out—45F is Forever
Partner Up! grants are competitive and funding is limited. The Schreiber Foods model (below) works forever because it uses the permanent Federal 45F Credit rather than temporary state funds.
🧀 WI Success Story: Schreiber Foods (Green Bay / Richland Center)
The global employee-owned dairy giant proves you don't need to build a center to make an impact.
The Schreiber Model: $5,000 Stipends + TOOTRiS
- The Challenge: Recruiting shift workers in rural "child care deserts" like Richland Center
- The Benefit: Schreiber offers eligible employees up to $5,000 annually to pay for child care
- The Tech: They partnered with TOOTRiS to administer the stipend—employees find providers (including non-traditional hours) and the $5,000 is paid directly to the facility
- The Adoption: In their initial pilot at Richland Center, 11% of the workforce enrolled immediately, proving massive demand
💰 The 45F Strategy
"Schreiber proves you don't need to build a center to make an impact. By offering a $5,000 stipend, they created a 'Qualified Child Care Expenditure.' This allows them to claim the Federal 45F Credit (up to $150k/year) to offset the cost of these payments."
🎯 Why This Wins for Wisconsin Employers
- Plan B to Grants: Partner Up! grants run out. The Schreiber model works forever using permanent Federal 45F.
- Clarifies "Qualified Expenses": Many employers think 45F is only for building centers. This proves you can use it for Stipends ($5k).
- Solves Rural Pain: Richland Center is a perfect example where "finding a spot" is as hard as "affording a spot"—TOOTRiS solves both.
🤝 Partner Up! Grant Program
For smaller businesses that need cash upfront, Partner Up! is still a powerful option.
How Partner Up! Works
- The Model: Employers partner with a child care provider to purchase slots
- The Benefit: State pays roughly 75% of the cost for those slots
- The Advantage: Cash upfront (or reimbursement) rather than waiting for tax season
- The Catch: Competitive grants with limited funding—apply early!
💡 The Smart Strategy: Use BOTH
Apply for Partner Up! grants for immediate cash relief. But also set up a stipend program (like Schreiber) using Federal 45F—this ensures you have a permanent benefit even when grant funding runs out.
Wisconsin-Specific Example: The Schreiber Model
A Green Bay manufacturer offers $5,000 stipends to 30 employees.
| Component | Amount | Notes |
|---|---|---|
| Total Stipends (30 employees × $5k) | $150,000/year | Qualified Child Care Expenditure |
| Federal 45F Credit (50% Small Biz) | -$75,000 | Direct tax credit |
| Business Expense Deduction (~25%) | -$37,500 | Reduces taxable income |
| Your Net Cost | ~$37,500 | Just $1,250/employee! |
💰 The Wisconsin Advantage
Benefit Value: $5,000/employee | Your Net Cost: ~$1,250/employee
Offer a $5,000 child care benefit for just $1,250 per employee—a 75% discount using the permanent Federal 45F Credit!
Wisconsin Compliance & Resources
📋 Child Care Licensing (DCF)
All facilities must be licensed by the Wisconsin Department of Children and Families (DCF).
DCF Child Care →🤝 Partner Up! Grants
Apply for Partner Up! grants through DCF. State pays ~75% of slot costs.
Partner Up! / Project Growth →📄 Federal Form 8882
File IRS Form 8882 to claim the federal Section 45F credit on stipends or facility costs.
IRS Form 8882 →🔍 Find Providers
Search for licensed providers through the Wisconsin Child Care Finder.
Child Care Finder →Wisconsin Child Care Landscape
Key Wisconsin Markets
Employers in these markets are leveraging Partner Up! and Federal 45F:
- Milwaukee – Manufacturing, healthcare, financial services
- Madison – State capital, tech, university, healthcare
- Green Bay – Dairy/food processing, manufacturing (Schreiber HQ)
- Kenosha-Racine – Manufacturing, logistics
- Appleton-Oshkosh – Paper/packaging, manufacturing
- La Crosse – Healthcare, logistics (Kwik Trip HQ)
- Eau Claire – Healthcare, education, manufacturing
- Richland Center – Rural dairy/food processing (Schreiber pilot)
Wisconsin Section 45F FAQ
Ready to Claim Your Wisconsin Child Care Credits?
Use our calculator to estimate your Federal 45F savings on stipends or facility costs!