PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 18, 2025
This bill increases the business tax credit for paid family and medical leave to up to 50% (from 25%) of the wages paid by an eligible employer to a qualifying employee while the employee is on family and medical leave.
Under current law, an eligible employer may claim a tax credit (through 2025) for between 12.5% and 25% of the wages paid to a qualified employee while the employee is on family and medical leave. The percentage of wages allowed as a tax credit increases proportionally, depending on what percentage of an employee’s normal wages is paid to the employee while the employee is on family and medical leave.
The bill increases the tax credit to between 25% and 50% of the wages paid to an employee while the employee is on family and medical leave, depending on what percentage of an employee’s normal wages is paid to the employee while the employee is on family and medical leave.
Under current law and the bill, an employer must pay at least 50% of the employee's normal wages while the employee is on leave to qualify for the tax credit.
People & committees
Rep. Mackenzie, Ryan [R-PA-7] · R–PA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Apr 30, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-18 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill would increase the employer tax credit for paid family and medical leave, which reduces taxes owed, and make the credit permanent. The proposed changes would apply to tax years beginning after December 31, 2025. The supplied text does not reproduce the existing eligibility rules or full credit calculation.
Increase in employer credit for paid family and medical leave
(1) by striking 12.5 percent and inserting 25 percent, (2) by striking 25 percent and inserting 50 percent, and (3) by striking 0.25 percentage points and inserting 0.50 percentage points.
(b) Credit made permanent Section 45S of such Code is amended by striking subsection (f).
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
The proposal would change three figures in the existing employer credit calculation: 12.5 percent to 25 percent, 25 percent to 50 percent, and 0.25 percentage points to 0.50 percentage points. The surrounding statutory formula is not supplied.
Section 45S(a)(2) of the Internal Revenue Code of 1986 is amended— (1) by striking 12.5 percent and inserting 25 percent, (2) by striking 25 percent and inserting 50 percent, and (3) by striking 0.25 percentage points and inserting 0.50 percentage points.
The proposal would delete subsection (f) of Internal Revenue Code section 45S. The bill describes this deletion as making the credit permanent, but does not reproduce the subsection being deleted.
(b) Credit made permanent Section 45S of such Code is amended by striking subsection (f).
Both the increased credit figures and the deletion of subsection (f) would apply to tax years beginning after December 31, 2025.
(c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
The supplied actions snapshot, updated April 30, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 18, 2025.
Source snapshot updated 2026-04-30T19:12:37Z. 2025-02-18: Referred to the House Committee on Ways and Means. 2025-02-18: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-18. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the bill's main subject was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption, or preferential exception was identified in the complete supplied introduced text. Ordinary benefits for the credit's intended beneficiaries do not alone qualify. This conclusion does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Apr 30, 2026. How PlainBill uses AI