What does ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE CREDIT. of Paid Family and Medical Leave Tax Credit Extension and Enhancement Act do?

This section amends Section 45S of the Internal Revenue Code of 1986 to enhance the paid family and medical leave credit for eligible employers. Employers can elect to calculate the credit as either a percentage of wages paid to qualifying employees on leave or a percentage of premiums paid for an insurance policy providing paid family and medical leave. The rate of payment under an insurance policy is determined without regard to whether qualifying employees were on leave. The aggregation rule for determining a single employer is modified, with an exception for businesses with a substantial and legitimate reason for not providing a written leave policy. Leave paid by state or local governments is taken into account in determining the amount of paid family leave provided by the employer, but not in determining the credit amount. The definition of 'qualifying employee' is updated to include those customarily employed for not less than 20 hours per week. Section 280C is amended to prevent a double benefit, disallowing deductions for premiums equal to the portion of the credit determined under section 45S(a)(1)(B). The Small Business Administration (SBA) and its resource partners are required to conduct outreach regarding the paid family and medical leave credit. The Internal Revenue Service (IRS) is also required to perform targeted outreach to employers and other relevant entities regarding the credit. The amendments apply to taxable years beginning after the date of enactment of this Act.

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Paid Family and Medical Leave Tax Credit Extension and Enhancement Act

Q: What does Preamble of Paid Family and Medical Leave Tax Credit Extension and Enhancement Act do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to enhance the paid family and medical leave credit, and for other purposes,' aims to modify the Internal Revenue Code of 1986. The bill intends to enhance the paid family and medical leave credit.

Q: What does SHORT TITLE. of Paid Family and Medical Leave Tax Credit Extension and Enhancement Act do?

This bill is formally titled the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act

Last updated: 2/4/2025 · Introduced: 2/4/2025

Author: Deb Fischer (R-NE)

TL;DR (AI)

This bill modifies the existing paid family and medical leave tax credit, allowing employers to calculate it based on either wages paid to employees on leave or premiums paid for insurance policies.
The legislation expands eligibility for the tax credit to include employees who typically work at least 20 hours per week and requires the Small Business Administration and IRS to conduct outreach about the credit.
To prevent double benefits, the bill disallows deductions for insurance premiums that correspond to the portion of the tax credit claimed by employers.

119th Congressin committeeOfficial page

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