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S 400119th CongressIntroduced
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
Introduced: Oct 29, 2025
Economy & TaxesLabor & EmploymentSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
This legislation enhances the federal tax credit for employers offering paid family and medical leave by expanding calculation methods to include insurance premiums, modifying employee eligibility criteria, and mandating government outreach to promote credit utilization among businesses and small employers nationwide.
Key Points
- 1Employers may now elect to calculate the tax credit based on either wages paid during leave or premiums for paid leave insurance policies regardless of actual leave usage.
- 2The bill establishes aggregation rules treating affiliated employers as single entities while excluding state-mandated paid leave from credit calculations to prevent double benefits.
- 3New requirements mandate Small Business Administration resource partners and the IRS to conduct targeted outreach educating employers about credit eligibility and policy development.
Impact Areas
Private sector employers of all sizesEmployees eligible for family or medical leaveFederal tax revenue through expanded business creditsSmall Business Administration and IRS outreach operations
Generated by Legislative Analysis Model v3.1 on Nov 3, 2025