Bill would double paid family leave tax credit for employers
In committeeH.R. 1424Latest action
Sponsor: Ryan Mackenzie · Representative · PA
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Official title: To amend the Internal Revenue Code of 1986 to increase the employer tax credit for paid family and medical leave.
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 1424 doubles the rate for employers who offer paid family and medical leave and makes that credit permanent starting in 2026.
45-second read · 4 questions answered below
What does this do?
This bill doubles the employers can claim for voluntarily offering paid family and medical leave. The starting credit rate would rise from 12.5% to 25% of wages paid during qualifying leave, and the rate can climb higher when employers pay a greater share of an employee's normal wages. The credit would also be made permanent instead of expiring, beginning with the 2026 tax year.
Who does it affect?
Any business of any size that chooses to offer paid family and medical leave to its employees could be affected.
Why does it matter?
Employers who already offer paid family and medical leave would receive a larger than they do today. Employers who did not previously offer it may find the higher credit changes their decision about whether to do so.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedFeb 18, 2025
- House committeeYou are here · Feb 18, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.