January 29, 2024
WASHINGTON, D.C. – U.S. Senators Angus King (I-Maine) and Deb Fischer (R-Neb.) have introduced legislation that makes it easier for businesses to offer paid family and medical leave (PFML) plans to employees. The Paid Family and Medical Leave Tax Credit Extension and Enhancement Act would provide certainty to businesses by making the paid family leave tax credit permanent and would provide additional options for financing paid leave such as through PFML insurance. Importantly, the bill also includes a King-led provision that allows eligible employers to receive the credit for leave offered in excess of any state or local mandates, offering a significant incentive for employers who wish to offer more leave than the Maine requirement.
Senators King and Fischer led the original effort to establish the country’s first ever nationwide PFML policy that created a two-year general business tax credit for employers that voluntarily offered up to 12 weeks of PFML to employees below a certain income level. The current credit, included in the 2017 Tax Cuts and Jobs Act and implemented in 2018, sunsets in 2025.
“I have often said that Maine is one big town—big community—with long roads. And when a member of our community is hurting, we drop everything to take care of our own. However, no one should have to choose between caring for our families or receiving the next paycheck to put food on the table,” said Senator King. “That’s why I’ve been working with my Republican colleague, Deb Fischer of Nebraska, to introduce the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act which makes the PFML tax credit permanent. By making this extension permanent on a bipartisan basis, we’re prioritizing people over politics –and supporting those who care for one another in times of need.”
“Americans shouldn’t have to choose between making ends meet and taking care of family—that’s why Senator King and I passed the first ever nationwide paid family leave law. Now, we need to make that legislation permanent and expand access to paid family leave. Our new bill will encourage more businesses to offer paid family leave to more working Americans,” said Senator Fischer.
The legislation builds on the existing credit by making the following changes:
The legislation is supported by Hospitality Maine, the American Council of Life Insurers (ACLI), American Institute of Certified Public Accountants (AICPA), Bipartisan Policy Center (BPC), National Federation of Independent Businesses (NFIB), National Restaurant Association, One Country Project (OCP).