Bill > HR996

This bill aims to enhance and extend the tax credit for employers who provide paid family and medical leave, making several key modifications to the existing tax credit under Section 45S of the Internal Revenue Code. Employers can now choose between two methods to claim the credit: either by calculating the credit based on wages paid to employees during family and medical leave, or by claiming a percentage of premiums paid for an insurance policy that covers such leave. The bill expands eligibility by allowing employers to claim the credit for policies lasting at least 6 months (previously 1 year), and clarifies that employees must typically work at least 20 hours per week to qualify. The legislation also introduces new rules for aggregating employers, specifying that businesses can be treated as a single employer for credit purposes, with some exceptions for those with legitimate business reasons. Additionally, the bill requires the Small Business Administration and its resource partners to conduct outreach and provide education about the credit, and mandates that the Internal Revenue Service perform targeted communications to help employers understand the credit's availability and requirements. The tax credit changes would apply to taxable years beginning after the date of enactment, potentially providing more businesses with financial incentives to offer paid family and medical leave.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/996/all-info