Proposed Senate Bill Aims to Broaden Availability of Paid Family Leave
U.S. Senators Deb Fischer and Angus King will introduce the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act. The proposed law aims to make the Paid Family and Medical Leave Employer Tax Credit permanent, easing the process for businesses of all sizes to offer such plans to their employees. This move expands on the 2017 Tax Cuts and Jobs Act’s first-ever nationwide PFML policy. Besides, the legislation will also offer alternative ways for companies to earn the paid leave tax credit, for instance, by paying for PFML insurance products. It further mandates extensive outreach campaigns to educate the masses about the credit. The Act has received extensive support from multiple local and national stakeholders. The Tax Cuts and Jobs Act (TCJA) previously instituted a two-year general business tax credit for employers voluntarily offering up to 12 weeks of PFML to employees, later extended until 2025. Senator Fischer and King’s legislation suggests changes such as making the credit permanent, updating treatment of paid leave enforced by state/local mandates, supporting coverage of PFL insurance premiums, and reducing the minimum employment period requirement. The bill also mandates significant outreach and awareness efforts by the Small Business Administration and the Internal Revenue Service to raise awareness about the credit.