Rep. Randy Feenstra
A new bipartisan bill proposed by U.S. Rep. Randy Feenstra (R-IA) aims to help America’s small businesses offer paid family and medical leave (PFML) to their employees.
“While larger corporations have more resources to offer PFML, we cannot leave our Main Street businesses behind,” Rep. Feenstra said.
Rep. Feenstra on June 27 sponsored the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act, H.R. 8860, alongside three original cosponsors, including Reps. Stephanie Bice (R-OK) and U.S. Rep. Yadira Caraveo (D-CO).
If enacted, H.R. 8860 would extend and reform the 45S tax credit for employers that voluntarily offer up to 12 weeks of PFML. The 45S two-year tax credit, authorized by the Tax Cuts and Jobs Act of 2017, was extended by Congress through 2025, according to a bill summary provided by the lawmakers.
“Right now, there is still uncertainty for both businesses and their employees because [this] tax credit… expires next year,” said Rep. Feenstra. “My legislation delivers a real solution by making this credit permanent and more accessible for small businesses so that they can more easily offer up to 12 weeks of PFML for their employees every year.
“By making this important tax credit permanent for our main-street employers, we can deliver certainty for our small businesses, keep our workers healthy and employed, and strengthen our economy and rural communities,” the congressman added.
Rep. Bice pointed out that while the 45S tax credit has helped many employers expand PFML benefits for their workers, awareness and uptake of the credit have been lower than lawmakers would like.
“That’s why I’m pleased to join Congressman Feenstra in introducing this legislation which will improve the credit, make it more flexible, increase employer awareness, and to make the tax credit permanent,” said Rep. Bice. “I will continue to work with my colleagues to find comprehensive solutions to provide more families with more paid leave.”
Specifically, the bill would improve the 45S tax credit available to small businesses that provide PFML, expanding it to include PFML provided through an insurance company or in a state with a mandate, the summary says, and would reduce the minimum time a worker must be employed to claim the credit from one year to six months.
H.R. 8860 is the companion bill to the same-named S. 3680, introduced in January by U.S. Sens. Deb Fischer (R-NE) and Angus King (I-ME).
“Our bill is the most realistic solution for paid family leave in America because it’s practical and bipartisan with a track record of success. And now, thanks to Rep. Feenstra and his colleagues, our legislation has support in both Houses of Congress,” said Sen. Fischer. “I look forward to working with my House counterparts to make paid family leave a reality for more working Americans.”
The measure is supported by the National Federation of Independent Business, the National Restaurant Association, the Association of International Certified Professional Accountants, the Alzheimer’s Association, the Bipartisan Policy Center Action, and the Society for Human Resource Management.