To amend the Internal Revenue Code of 1986 to increase the employer tax credit for paid family and medical leave.
Sponsored By: Representative Mackenzie, Ryan [R-PA-7]
Introduced
Summary
This bill would raise the employer tax credit for paid family and medical leave to a maximum of 50% and make that credit permanent. It would apply to taxable years beginning after December 31, 2025, so the changes would start in 2026.
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- Employers: Would increase the maximum credit for qualified leave wages to 50% by changing the percentage steps in Section 45S and by removing the credit's sunset. This lowers the cost of offering paid leave for employers starting in 2026.
- Workers and families: Would strengthen incentives for employers to offer paid family and medical leave, which could expand access to paid leave for employees and their families.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Bigger permanent paid leave credit for employers
Employers who offer qualifying paid family and medical leave could get a bigger tax credit. The base rate would rise from 12.5% to 25%, and the maximum rate from 25% to 50%. The step-up per extra percent of wage pay would also double, from 0.25 to 0.50 percentage points. The credit would no longer expire; it would be permanent. These changes would apply to taxable years that begin after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Mackenzie, Ryan [R-PA-7]
PA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov