U.S. House bill introduced to extend tax credit for paid family, medical leave

Bipartisan legislation introduced by U.S. Rep. Randy Feenstra (R-IA) aims to help America’s small businesses offer paid family and medical leave (PFML) to their employees.

“While larger corporations have more resources to offer PFML, we cannot leave our Main Street businesses behind,” Rep. Feenstra said.

Rep. Feenstra on June 27 sponsored the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act, H.R. 8860, alongside three original cosponsors, including U.S. Rep. Yadira Caraveo (D-CO).

H.R. 8860 would extend and reform the 45S tax credit for employers that voluntarily offer up to 12 weeks of PFML. The 45S two-year tax credit, authorized by the Tax Cuts and Jobs Act of 2017, was extended by Congress through 2025.

“Right now, there is still uncertainty for both businesses and their employees because [this] tax credit… expires next year,” said Rep. Feenstra. “My legislation delivers a real solution by making this credit permanent and more accessible for small businesses so that they can more easily offer up to 12 weeks of PFML for their employees every year.

“By making this important tax credit permanent for our main-street employers, we can deliver certainty for our small businesses, keep our workers healthy and employed, and strengthen our economy and rural communities,” the congressman added.

The bill would improve the 45S tax credit available to small businesses that provide PFML, expanding it to include PFML provided through an insurance company or in a state with a mandate, and would reduce the minimum time a worker must be employed to claim the credit from one year to six months.

H.R. 8860 is the companion bill to the same-named S. 3680, introduced in January by U.S. Sens. Deb Fischer (R-NE) and Angus King (I-ME).

The measure is supported by the National Federation of Independent Business, the National Restaurant Association, the Association of International Certified Professional Accountants, the Alzheimer’s Association, the Bipartisan Policy Center Action, and the Society for Human Resource Management.

“NFIB thanks Congressman Feenstra for understanding that incentivizing small business owners to offer paid family and medical leave is a better approach than mandating burdensome leave policies,” said Kelsey Snyder, principal of Federal Government Relations at the National Federation of Independent Business.

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