Senators Fischer and King Introduce Bill to Expand Paid Family Leave Tax Credits for Small Businesses
This bill was introduced in the Senate and is currently being reviewed by the Committee on Finance. It is still in the early stages of the lawmaking process and has not yet been scheduled for a vote. The bill is considered active as it waits for further action from the committee.
The bill has bipartisan support and builds on an existing tax credit, but major tax changes often face delays in a divided Congress.
The bill requires qualifying employees to be customarily employed for at least 20 hours per week. Many gig workers and part-time employees who work fewer hours would not qualify as eligible employees under this credit, meaning their employers would not receive a tax incentive to offer them paid leave.
“is customarily employed for not less than 20 hours per week”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
Senators Deb Fischer and Angus King reintroduced legislation to enshrine the Paid Family and Medical Leave tax credit, which incentivizes businesses to provide leave for employees. The bill reduces the minimum employment period to six months to include younger workers with less tenure.
On July 4, President Trump signed H.R. 1, the One Big Beautiful Bill Act (OBBBA), into law. Under OBBBA, the existing paid family and medical leave tax credit available to eligible employers that provide paid leave at a rate of at least 50% of wages are made permanent.
The Act permanently extends the federal paid family and medical leave employer tax credit created by TCJA. It updates the structure by lowering the employment tenure requirement to six months and allowing employers to claim the credit for premiums paid for qualifying insurance policies.
Document Type
Congressional Bill
Official Title
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
Analysis generated by AI. Always verify with official sources.