H.R. 1424In committeeJobs & the economy
Bill would double paid family leave tax credit for employers
Data as of July 11, 2026
HR 1424 doubles the tax credit 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
Decoded
What does this do?
This bill doubles the tax credit 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 tax credit than they do today. Employers who did not previously offer it may find the higher credit changes their decision about whether to do so.
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- 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.
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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.
- Introduced:
- February 18, 2025
- Latest action:
- February 18, 2025
Referred to the House Committee on Ways and Means.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.