Us Congress 2025-2026 Regular Session

Us Congress House Bill HB996 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 996
5	5	To amend the Internal Revenue Code of 1986 to enhance the paid family
6	6	and medical leave credit, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	FEBRUARY5, 2025
9	9	Mr. F
10	10	EENSTRA(for himself, Mrs. BICE, and Ms. PEREZ) introduced the
11	11	following bill; which was referred to the Committee on Ways and Means
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to enhance
14	14	the paid family and medical leave credit, and for other
15	15	purposes.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. SHORT TITLE. 3
19	19	This Act may be cited as the ‘‘Paid Family and Med-4
20	20	ical Leave Tax Credit Extension and Enhancement Act’’. 5
21	21	SEC. 2. ENHANCEMENT OF PAID FAMILY AND MEDICAL 6
22	22	LEAVE CREDIT. 7
23	23	(a) I
24	24	NGENERAL.—Section 45S of the Internal Rev-8
25	25	enue Code of 1986 is amended— 9
26	26	(1) in subsection (a)— 10
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29	29	•HR 996 IH
30	30	(A) by striking paragraph (1) and insert-1
31	31	ing the following: 2
32	32	‘‘(1) I
33	33	N GENERAL.—For purposes of section 38, 3
34	34	in the case of an eligible employer, the paid family 4
35	35	and medical leave credit is an amount equal to ei-5
36	36	ther of the following (as elected by such employer): 6
37	37	‘‘(A) The applicable percentage of the 7
38	38	amount of wages paid to qualifying employees 8
39	39	with respect to any period in which such em-9
40	40	ployees are on family and medical leave. 10
41	41	‘‘(B) If such employer has an insurance 11
42	42	policy with regards to the provision of paid 12
43	43	family and medical leave which is in force dur-13
44	44	ing the taxable year, the applicable percentage 14
45	45	of the total amount of premiums paid or in-15
46	46	curred by such employer during such taxable 16
47	47	year with respect to such insurance policy.’’, 17
48	48	and 18
49	49	(B) by adding at the end the following: 19
50	50	‘‘(3) R
51	51	ATE OF PAYMENT DETERMINED WITH -20
52	52	OUT REGARD TO WHETHER LEAVE IS TAKEN .—For 21
53	53	purposes of determining the applicable percentage 22
54	54	with respect to paragraph (1)(B), the rate of pay-23
55	55	ment under the insurance policy shall be determined 24
56	56	without regard to whether any qualifying employees 25
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59	59	•HR 996 IH
60	60	were on family and medical leave during the taxable 1
61	61	year.’’, 2
62	62	(2) in subsection (b)(1), by striking ‘‘credit al-3
63	63	lowed’’ and inserting ‘‘wages taken into account’’, 4
64	64	(3) in subsection (c), by striking paragraphs (3) 5
65	65	and (4) and inserting the following: 6
66	66	‘‘(3) A
67	67	GGREGATION RULE.— 7
68	68	‘‘(A) I
69	69	N GENERAL.—Except as provided in 8
70	70	subparagraph (B), all persons which are treated 9
71	71	as a single employer under subsections (b) and 10
72	72	(c) of section 414 shall be treated as a single 11
73	73	employer. 12
74	74	‘‘(B) E
75	75	XCEPTION.— 13
76	76	‘‘(i) I
77	77	N GENERAL.—Subparagraph (A) 14
78	78	shall not apply to any person who estab-15
79	79	lishes to the satisfaction of the Secretary 16
80	80	that such person has a substantial and le-17
81	81	gitimate business reason for failing to pro-18
82	82	vide a written policy described in para-19
83	83	graph (1) or (2). 20
84	84	‘‘(ii) S
85	85	UBSTANTIAL AND LEGITIMATE 21
86	86	BUSINESS REASON .—For purposes of 22
87	87	clause (i), the term ‘substantial and legiti-23
88	88	mate business reason’ shall not include the 24
89	89	operation of a separate line of business, 25
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93	93	the rate of wages or category of jobs for 1
94	94	employees (or any similar basis), or the ap-2
95	95	plication of State or local laws relating to 3
96	96	family and medical leave, but may include 4
97	97	the grouping of employees of a common 5
98	98	law employer. 6
99	99	‘‘(4) T
100	100	REATMENT OF BENEFITS MANDATED OR 7
101	101	PAID FOR BY STATE OR LOCAL GOVERNMENTS .—For 8
102	102	purposes of this section, any leave which is paid by 9
103	103	a State or local government or required by State or 10
104	104	local law— 11
105	105	‘‘(A) except as provided in subparagraph 12
106	106	(B), shall be taken into account in determining 13
107	107	the amount of paid family and medical leave 14
108	108	provided by the employer, and 15
109	109	‘‘(B) shall not be taken into account in de-16
110	110	termining the amount of the paid family and 17
111	111	medical leave credit under subsection (a).’’, 18
112	112	(4) in subsection (d)— 19
113	113	(A) in paragraph (1), by inserting ‘‘(or, at 20
114	114	the election of the employer, for not less than 21
115	115	6 months)’’ after ‘‘1 year or more’’, and 22
116	116	(B) in paragraph (2)— 23
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120	120	(i) by inserting ‘‘, as determined on 1
121	121	an annualized basis (pro-rata for part-time 2
122	122	employees),’’ after ‘‘compensation’’, and 3
123	123	(ii) by striking the period at the end 4
124	124	and inserting ‘‘, and’’, and 5
125	125	(C) by adding at the end the following: 6
126	126	‘‘(3) is customarily employed for not less than 7
127	127	20 hours per week.’’, and 8
128	128	(5) by striking subsection (i). 9
129	129	(b) N
130	130	ODOUBLEBENEFIT.—Section 280C(a) of the 10
131	131	Internal Revenue Code of 1986 is amended— 11
132	132	(1) by striking ‘‘45S(a)’’ and inserting 12
133	133	‘‘45S(a)(1)(A)’’, and 13
134	134	(2) by inserting after the first sentence the fol-14
135	135	lowing: ‘‘No deduction shall be allowed for that por-15
136	136	tion of the premiums paid or incurred for the tax-16
137	137	able year which is equal to that portion of the paid 17
138	138	family and medical leave credit which is determined 18
139	139	for the taxable year under section 45S(a)(1)(B).’’. 19
140	140	(c) O
141	141	UTREACH.— 20
142	142	(1) SBA
143	143	AND RESOURCE PARTNERS .—Each 21
144	144	district office of the Small Business Administration 22
145	145	and each resource partner of the Small Business Ad-23
146	146	ministration, including small business development 24
147	147	centers described in section 21 of the Small Busi-25
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151	151	ness Act (15 U.S.C. 648), women’s business centers 1
152	152	described in section 29 of such Act (15 U.S.C. 656), 2
153	153	each chapter of the Service Corps of Retired Execu-3
154	154	tives described in section 8(b)(1)(B) of such Act (15 4
155	155	U.S.C. 637(b)(1)(B)), and Veteran Business Out-5
156	156	reach Centers described in section 32 of such Act 6
157	157	(15 U.S.C. 657b), shall conduct outreach to relevant 7
158	158	parties regarding the paid family and medical leave 8
159	159	credit under section 45S of the Internal Revenue 9
160	160	Code of 1986, including through— 10
161	161	(A) targeted communications, education, 11
162	162	training, and technical assistance; and 12
163	163	(B) the development of a written paid fam-13
164	164	ily leave policy, as described in paragraphs (1) 14
165	165	and (2) of section 45S(c) of the Internal Rev-15
166	166	enue Code of 1986. 16
167	167	(2) I
168	168	NTERNAL REVENUE SERVICE .—The Sec-17
169	169	retary of the Treasury (or the Secretary’s delegate) 18
170	170	shall perform targeted outreach to employers and 19
171	171	other relevant entities regarding the availability and 20
172	172	requirements of the paid family and medical leave 21
173	173	credit under section 45S of the Internal Revenue 22
174	174	Code of 1986, including providing relevant informa-23
175	175	tion as part of Internal Revenue Service communica-24
176	176	tions that are regularly issued to entities that pro-25
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180	180	vide payroll services, tax professionals, and small 1
181	181	businesses. 2
182	182	(d) E
183	183	FFECTIVEDATE.—The amendments made by 3
184	184	this section shall apply to taxable years beginning after 4
185	185	the date of enactment of this Act. 5
186	186	Æ
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