U.S. Sens. Deb Fischer (R-NE) and Angus King (I-ME) are sponsoring a bill in the U.S. Senate that would make the Paid Family and Medical Leave (PFML) Employer Tax Credit permanent.
Their bill, the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act, would, in effect, make it easier for businesses to offer PFML plans to employees.
The legislation builds on the 2017 law that the two senators spearheaded as part of the 2017 Tax Cuts and Jobs Act. That bill created a two-year general business tax credit for employers that voluntarily offer up to 12 weeks of PFML to employees. Congress has extended the credit through 2025. The credit also includes an income cap to ensure it remains targeted to employees who need it the most.
“Americans shouldn’t have to choose between making ends meet and taking care of family—that’s why Senator King and I passed the first ever nationwide paid family leave law. Now, we need to make that legislation permanent and expand access to paid family leave. Our new bill will encourage more businesses to offer paid family leave to more working Americans,” Fischer said.
This new legislation from Fischer and King would do several things, starting with making the tax credit permanent. It would also allow eligible employers to receive the credit for leave provided in states without PFML mandates or for leave offered in excess of any state or local mandate.
In addition, it would allow employers to claim the credit for premiums paid for PFML insurance products that cover qualifying employees. Further, it would give employers the option to offer PFML to employees at 6 months and better, targeting the credit towards younger workers. Also, it would require the Small Business Administration and Internal Revenue Service to conduct targeted outreach, education, and technical assistance to assist in increasing awareness of the credit.
“I have often said that Maine is one big town—big community—with long roads. And when a member of our community is hurting, we drop everything to take care of our own. However, no one should have to choose between caring for our families or receiving the next paycheck to put food on the table. That’s why I’ve been working with my Republican colleague, Deb Fischer of Nebraska, to introduce the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act which makes the PFML tax credit permanent,” King said.
The bill has the support of several organizations, including the American Association of Retired Persons (AARP), American Council of Life Insurers (ACLI), American Institute of Certified Public Accountants (AICPA), Bipartisan Policy Center (BPC), National Federation of Independent Businesses (NFIB), National Restaurant Association, and One Country Project (OCP).