Sioux City Times

WASHINGTON, D.C. – U.S. Representative Randy Feenstra (R-Hull) has introduced the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act to assist small businesses in offering paid family and medical leave (PFML) to their employees. This legislation aims to extend and reform the 45S tax credit, initially authorized by the Tax Cuts and Jobs Act of 2017 and extended by Congress through 2025, for employers that voluntarily provide up to 12 weeks of PFML.

The bill is co-led by U.S. Representatives Stephanie Bice (R-OK), Marie Gluesenkamp Perez (D-WA), and Yadira Caraveo (D-CO). Companion legislation has been introduced in the U.S. Senate by Senators Deb Fischer (R-NE) and Angus King (I-ME).

“When a family welcomes a newborn into the world or a medical condition leaves someone unable to work, it’s important that employees of businesses both large and small have access to paid family and medical leave," said Rep. Feenstra. "While larger corporations have more resources to offer PFML, we cannot leave our main-street businesses behind."

Rep. Bice emphasized the need for increased awareness of the tax credit: “The 45S tax credit has helped many employers expand paid family leave benefits for their workers. However, awareness and uptake of this credit have been lower than we’d like.”

Rep. Gluesenkamp Perez highlighted the financial security provided by PFML: “Taking care of your health, newborn, or family when they’re most in need shouldn’t come at the cost of paying the bills.”

Rep. Caraveo added her perspective as a pediatrician: “Nobody should have to choose between a paycheck and taking care of a loved one.”

Senator Fischer expressed optimism about bipartisan support: “Our bill is the most realistic solution for paid family leave in America because it’s practical and bipartisan with a track record of success.”

Kelsey Snyder from the National Federation of Independent Business noted, “NFIB thanks Congressman Feenstra for understanding that incentivizing small business owners to offer paid family and medical leave is a better approach than mandating burdensome leave policies.”

Sean Kennedy from the National Restaurant Association remarked on its importance in recruitment: “In a tight labor market like we’re experiencing now, many restaurant operators are looking for benefits like paid family leave.”

Melanie Lauridsen from AICPA endorsed the act: “We are grateful to Representatives Randy Feenstra (R-IA), Yadira Caraveo (D-CO), Marie Gluesenkamp Perez (D-WA) and Stephanie Bice (R-OK) for their leadership in the House on this important bipartisan legislation.”

Robert Egge from Alzheimer’s Impact Movement stated, “For over 11 million individuals caring for loved ones living with Alzheimer’s or other dementia in our nation... The Paid Family and Medical Leave Tax Credit Extension and Enhancement Act will help families impacted by this devastating disease."

Michele Stockwell from Bipartisan Policy Center Action supported making the tax credit permanent: "This tax credit helps businesses provide paid family and medical leave benefits to hard-working Americans."

Emily M. Dickens from Society for Human Resource Management praised improvements included in the bill: "The Paid Family and Medical Leave Tax Credit Extension and Enhancement Act builds upon the existing 45S tax credit by adding key improvements."

The proposed legislation seeks not only to extend but also improve access to PFML through an insurance company or state mandate while reducing employment duration requirements from one year to six months.

According to Bureau of Labor Statistics data, more than 41% of employees at large businesses have access to PFML compared with just 20% at smaller companies.