[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2618 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2618
To amend the Internal Revenue Code of 1986 to provide a credit to
employers who provide paid family and medical leave.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 16, 2014
Mrs. Fischer (for herself and Mr. King) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit to
employers who provide paid family and medical leave.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strong Families Act''.
SEC. 2. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE.
``(a) In General.--For purposes of section 38, in the case of an
eligible employer, the paid family and medical leave credit is an
amount equal to 25 percent of the amount of wages paid to qualifying
employees during any period in which such employees are on family and
medical leave.
``(b) Limitation.--The credit allowed under subsection (a) with
respect to any employee shall not exceed $4,000 per employee per year.
In the case of any employee who is not paid on an hourly basis, the
wages of such employee shall be prorated to an hourly basis under
regulations established by the Secretary, in consultation with the
Secretary of Labor.
``(c) Eligible Employer.--For purposes of this section--
``(1) In general.--The term `eligible employer' means any
employer who has in place a policy that provides--
``(A) all qualifying full-time employees with not
less than 4 weeks of paid family and medical leave,
``(B) all qualifying employees who are not full-
time employees with an amount of paid family and
medical leave that bears the same ratio to 4 weeks as--
``(i) the number of hours the employee is
expected to work during any week, bears to
``(ii) the number of hours an equivalent
qualifying full-time employee is expected to
work during the week, and
``(C) the maximum amount of time eligible employers
may provide is twelve weeks.
``(2) Special rule for certain employers.--
``(A) In general.--An added employer shall not be
treated as an eligible employer unless such employer
provides paid family and medical leave under a policy
with a provision that states that the employer--
``(i) will not interfere with, restrain, or
deny the exercise of or the attempt to
exercise, any right provided under the policy,
and
``(ii) will not discharge or in any other
manner discriminate against any individual for
opposing any practice prohibited by the policy.
``(B) Added employer; added employee.--For purposes
of this paragraph--
``(i) Added employee.--The term `added
employee' means a qualifying employee who is
not covered by title I of the Family and
Medical Leave Act of 1993.
``(ii) Added employer.--The term `added
employer' means an eligible employer
(determined without regard to this paragraph),
whether or not covered by that title I, who
offers paid family and medical leave to added
employees.
``(3) Treatment of state-paid benefits.--For purposes of
paragraph (1), any leave which is paid by a State or local
government shall not be taken into account in determining the
amount of paid family and medical leave provided by the
employer.
``(4) No inference.--Nothing in this subsection shall be
construed as subjecting an employer to any penalty, liability,
or other consequence (other than ineligibility for the credit
allowed by reason of subsection (a)) for failure to comply with
the requirements of this subsection.
``(d) Qualifying Employees.--For purposes of this section, the term
`qualifying employee' means any employee (as defined in section 3(e) of
the Fair Labor Standards Act of 1938) who has been employed by the
employer for one year or more.
``(e) Family and Medical Leave.--For purposes of this section, the
term `family and medical leave' means leave for any purpose described
under subparagraph (A), (B), (C), (D), or (E) of paragraph (1), or
paragraph (3), of section 102(a) of the Family and Medical Leave Act of
1993, whether the leave is provided under that Act or by a policy of
the employer. Such term shall not include any leave provided as paid
vacation leave, personal leave, or medical or sick leave (within the
meaning of those 3 terms under section 102(d)(2) of that Act).
``(f) Wages.--For purposes of this section, the term `wages' has
the meaning given such term by subsection (b) of section 3306
(determined without regard to any dollar limitation contained in such
section).''.
(b) Credit Part of General Business Credit.--Section 38(b) of the
Internal Revenue Code of 1986 is amended by striking ``plus'' at the
end of paragraph (35), by striking the period at the end of paragraph
(36) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(37) in the case of an eligible employer (as defined in
section 45S(c)), the paid family and medical leave credit
determined under section 45S(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45S. Employer credit for paid family and medical leave.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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