Sioux City Times

U.S. Representative Randy Feenstra introduced the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act, aiming to support small businesses in providing paid family and medical leave (PFML) to their employees. This legislation seeks to extend and reform the 45S tax credit, initially established by the Tax Cuts and Jobs Act of 2017, for employers who voluntarily offer up to 12 weeks of PFML.

Co-leading this initiative are U.S. Representatives Stephanie Bice and Marie Gluesenkamp Perez, while Senators Deb Fischer and Angus King have introduced similar legislation in the Senate.

Feenstra stated, "Paid family and medical leave (PFML) is a lifeline for workers when facing a medical condition or welcoming a newborn into the world." He emphasized that making this policy permanent would provide certainty for small businesses, help keep workers healthy and employed, and benefit the economy.

Senator Fischer highlighted that "America’s working families drive our economy forward," underscoring the need for permanent legislation to expand access so more businesses can offer paid family leave. Representative Bice pointed out that although the 45S tax credit has been beneficial since its implementation under the Trump administration, awareness has been limited. The new bill aims to improve flexibility, increase employer awareness, and make the credit permanent.

Senator King noted Maine's community spirit: "No one should have to choose between caring for our families or receiving the next paycheck." He advocates for making PFML tax credits permanent as they enable families to succeed both at home and professionally.

Representative Gluesenkamp Perez remarked on how strong families contribute to strong communities: "Taking care of your health, newborn, or family shouldn’t come at the cost of paying bills." The bipartisan effort intends to make these credits permanent while expanding access for Washington-based businesses.

The proposed legislation also plans improvements such as reducing employment duration requirements from one year to six months before claiming credits. It will provide resources for educating small businesses about utilizing these benefits effectively.

Statistics from the Bureau of Labor show over 41% of employees in large companies have access to PFML compared with only 20% in smaller firms with fewer than 99 employees.