Bill > HB1018

This bill creates the Strong Families Act, which establishes an income tax credit for employers who provide paid family and medical leave to their employees. The bill defines "family and medical leave" as time off for a serious health condition of the employee, the birth or adoption of a child, or caring for a seriously ill child, spouse, or parent. To qualify for the tax credit, employers must provide full-time employees with at least four weeks of paid leave and part-time employees with a proportional amount of leave. The tax credit is equal to 25% of the wages paid to an employee during their leave, with a maximum credit of $4,000 per employee per tax year. Employers must also adopt a policy that protects employees' rights to take leave without interference or discrimination. The leave can run concurrently with other legally mandated leave, such as the federal Family and Medical Leave Act. The tax credit is available for tax years beginning on or after January 1, 2025, and cannot exceed the total income tax owed by the employer. This bill aims to support families by incentivizing employers to provide paid leave and create more flexible work environments.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1018&ddBienniumSession=2025%2F2025R