[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1628 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 1628
To amend the Internal Revenue Code of 1986 to extend the employer
credit for paid family and medical leave, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23 (legislative day, May 22), 2019
Mrs. Fischer (for herself, Mr. King, and Ms. Collins) 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 extend the employer
credit for paid family and medical leave, and for other purposes.
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 ``Paid Family Leave Pilot Extension
Act''.
SEC. 2. EXTENSION OF EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE.
(a) Program Extension.--Section 45S(i) of the Internal Revenue Code
of 1986 is amended by striking ``December 31, 2019'' and inserting
``December 31, 2022''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2019.
SEC. 3. EMPLOYER REQUIREMENTS FOR RATE OF PAYMENT.
(a) In General.--Subsection (c) of section 45S of the Internal
Revenue Code of 1986 is amended--
(1) in paragraph (1)(B), by inserting after the first
sentence the following: ``For purposes of determining the rate
of payment under the program, any family and medical leave
which is paid by a State or local government or required by
State or local law, determined as a percentage of the wages
normally paid to such employee for services performed for the
employer, shall be taken into account.'', and
(2) in paragraph (4)--
(A) by striking ``For purposes of this section,
any'' and inserting ``Any'', and
(B) by striking ``amount of paid family and medical
leave provided by the employer'' and inserting ``wages
taken into account under subsection (a)''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 13403 of Public Law 115-97.
SEC. 4. TECHNICAL CORRECTIONS.
(a) In General.--Section 45S of the Internal Revenue Code of 1986
is amended--
(1) in subsection (b)(1), by striking ``credit allowed''
and inserting ``wages taken into account'',
(2) in subsection (c), by striking paragraph (3) and
inserting the following:
``(3) Aggregation rule.--
``(A) In general.--Except as provided in
subparagraph (B), all persons which are treated as a
single employer under subsections (b) and (c) of
section 414 shall be treated as a single employer.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall
not apply to any person who establishes to the
satisfaction of the Secretary that such person
has a substantial and legitimate business
reason for failing to provide a written policy
described in paragraph (1) or (2).
``(ii) Substantial and legitimate business
reason.--For purposes of clause (i), the term
`substantial and legitimate business reason'
shall not include the operation of a separate
line of business, the rate of wages or category
of jobs for employees (or any similar basis),
or the application of State or local laws
relating to family and medical leave, but may
include the grouping of employees of a common
law employer.'', and
(3) in subsection (d)(2), by inserting ``, as determined on
an annualized basis (pro-rata for part-time employees),'' after
``compensation''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 13403 of Public Law 115-97.
SEC. 5. GAO STUDY OF IMPACT OF TAX CREDIT TO PROMOTE ACCESS TO PAID
FAMILY AND MEDICAL LEAVE.
(a) Study.--Not later than June 30, 2022, the Comptroller General
of the United States, in consultation with the Secretary of the
Treasury and the Secretary of Labor, shall--
(1) complete a study that--
(A) examines the effectiveness of the tax credit
for paid family and medical leave authorized under
section 45S of the Internal Revenue Code of 1986 in
terms of--
(i) increasing access to paid family and
medical leave among qualifying employees;
(ii) promoting the creation of new paid
family and medical leave policies among
eligible employers;
(iii) increasing the generosity of existing
paid family and medical leave policies among
eligible employers; and
(iv) incenting employee or employer
behavior that might not otherwise have occurred
in the absence of the credit;
(B) provides recommendations for ways to modify or
enhance the tax credit to further promote access to
paid family and medical leave for qualifying employees;
and
(C) provides suggestions of alternative policies
that Federal and State governments could implement to
increase access to paid family and medical leave,
particularly among qualifying employees; and
(2) prepare and submit a report to the Committee on Finance
of the Senate and the Committee on Ways and Means of the House
of Representatives setting forth the conclusions of the study
conducted under paragraph (1) in such a manner that the
recommendations included in the report can inform future
legislative action.
Such report shall also be made publicly available via the website of
the Government Accountability Office.
(b) Prohibition.--In carrying out the requirements of this section,
the Comptroller General of the United States may request qualitative
and quantitative information from employers and employees claiming the
credit under section 45S of the Internal Revenue Code of 1986, but
nothing in this section shall be construed as mandating additional
reporting requirements for such employers or employees beyond what is
already required by law.
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