This bill would expand the existing tax credit that encourages employers to provide paid family and medical leave to their employees. Specifically, it would allow employers to claim the credit based on either wages paid to employees on leave or insurance premiums paid for paid leave coverage, give employers the option to claim the credit for employees taking leave lasting at least six months instead of just one year, and expand eligibility to include part-time employees working at least 20 hours per week. The bill also prevents employers from receiving a double tax benefit by deducting the same expenses twice. To help employers take advantage of this expanded credit, the legislation directs the Small Business Administration and the Internal Revenue Service to conduct outreach and provide education about the program, particularly to small businesses. The changes would take effect for tax years beginning after the bill is enacted, though the legislation does not specify the cost or identify dedicated funding for implementation.
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