[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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