Bills · S 400
IN COMMITTEE· 119TH CONGRESS
Senate BillS 400Taxation
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
INTRO FEB 4· LAST ACTION FEB 4
READING
5MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it encourages businesses to offer paid family and medical leave, which is a significant benefit for workers and their families. Many Americans struggle to balance work with family responsibilities or personal health crises without losing income. If this bill becomes law, the tax credit becomes a permanent feature, giving businesses a consistent financial incentive to provide paid leave, which could lead to more employees having access to these benefits.
The changes also make the credit more flexible, potentially allowing more employers, especially those who use insurance for their leave programs, to claim it. The outreach provisions mean that more businesses, particularly small ones, are likely to learn about and take advantage of the credit. Without this bill, the tax credit would eventually expire, and employers would lose this incentive, potentially leading to fewer paid leave options for workers in the future.
KEY PROVISIONS
5AI-extractedPROVISION 01
Allows employers to claim the paid family and medical leave tax credit based on either wages paid to employees on leave or premiums paid for a qualifying insurance policy.
This provides employers with more flexibility in how they calculate the tax credit, potentially making it more appealing for those who use insurance to fund their leave programs.
PROVISION 02
Removes the expiration date for the paid family and medical leave tax credit, making it a permanent tax incentive.
This provides long-term certainty for employers, encouraging them to establish or continue offering paid leave policies without concern that the tax benefit will disappear.
PROVISION 03
Changes the definition of a "qualifying employee" for the credit to include those who have worked for at least 6 months (down from 1 year) but also requires them to customarily work at least 20 hours per week.
This expands the number of newer employees for whom employers can claim the credit but narrows it for very part-time workers, changing incentives for employers.
PROVISION 04
Requires the Small Business Administration and the Internal Revenue Service to conduct targeted outreach to inform businesses about the availability and requirements of this tax credit.
This helps ensure that more businesses, especially small ones, are aware of and understand how to access this financial incentive to offer paid leave.
PROVISION 05
Clarifies that employers cannot claim the tax credit for leave paid for or mandated by state or local governments, and prevents employers from claiming both the credit and a deduction for the same costs.
This prevents "double dipping" on tax benefits and ensures that the credit is applied consistently and only for employer-provided leave beyond state/local requirements.
SPONSORSHIP
1 + 3
R· Nebraska
YRS IN OFFICE
13
BILLS LED
34
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 2 IND 1
ACTION TIMELINE
2 EVENTSFEB 4
Introduced in Senate
FEB 4
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 400
Congress119th
StatusIn Committee
IntroducedFeb 4, 2025
Last actionFeb 4, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED FEB 4, 2025
Senate BillS 400Taxation
Paid Family and Medical Leave Tax Credit Extension and Enhancement Act
INTRODUCED FEB 4, 2025· LAST ACTION FEB 4, 2025
PASSAGE CHANCES
—%
READING
5 min
COSPONSORS
3
COMPLEXITY
Moderate
