Plain English
GovGreed Synthesis ·
This bill increases the business tax credit for paid family and medical leave to up to 50% (from 25%) of the wages paid by an eligible employer to a qualifying employee while the employee is on family and medical leave. Under current law, an eligible employer may claim a tax credit (through 2025) for between 12.5% and 25% of the wages paid to a qualified employee while the employee is on family and medical leave. The percentage of wages allowed as a tax credit increases proportionally, depending on what percentage of an employee’s normal wages is paid to the employee while the employee is on family and medical leave. The bill increases the tax credit to between 25% and 50% of the wages paid to an employee while the employee is on family and medical leave, depending on what percentage of an employee’s normal wages is paid to the employee while the employee is on family and medical leave. Under current law and the bill, an employer must pay at least 50% of the employee's normal wages while the employee is on leave to qualify for the tax credit.
Market Impact Map
Action Timeline
2025-02-18
Referred to the House Committee on Ways and Means.
2025-02-18
Introduced in House
2025-02-18
Introduced in House
Full Bill Text
119 HR 1424 IH: To amend the Internal Revenue Code of 1986 to increase the employer tax credit for paid family and medical leave. U.S. House of Representatives 2025-02-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1424 IN THE HOUSE OF REPRESENTATIVES February 18, 2025 Mr. Mackenzie introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the employer tax credit for paid family and medical leave. 1. Increase in employer credit for paid family and medical leave (a) Increase in credit percentages Section 45S(a)(2) of the Internal Revenue Code of 1986 is amended— (1) by striking 12.5 percent and inserting 25 percent , (2) by striking 25 percent and inserting 50 percent , and (3) by striking 0.25 percentage points and inserting 0.50 percentage points . (b) Credit made permanent Section 45S of such Code is amended by striking subsection (f). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Loading intelligence layer…