05 Feb 2025 BPC Action Applauds Momentum on Paid Leave Tax Credit Ahead of 2025 Tax Debate in Paid Parental Leave

Bipartisan Policy Center (BPC) Action applauds the introduction of legislation to expand support for employers offering paid family and medical leave to their employees. BPC Action President Michele Stockwell said:

“BPC Action is proud to endorse the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act to make permanent and expand the employer tax credit for paid family and medical leave, known as 45S, and applauds Sens. Deb Fischer (R-NE) and Angus King (I-ME) for their bipartisan leadership on this bill. As BPC has found, ‘In an ever-changing economy and tight labor market, paid family and medical leave can importantly encourage workers to stay in the labor force, support household finances, and help businesses compete for workers.’

“Making the tax credit permanent will give businesses confidence that they can rely on the credit to provide paid leave benefits for years to come. The bill will also expand access to leave benefits by 1) giving employers the option to reduce the employee tenure requirement from one year to six months and 2) allowing employers to apply the tax credit toward the costs of providing paid leave through private insurance carriers. These changes, combined with a concerted education effort to ensure that employers are aware of 45S, will expand access to leave benefits.

“This bill is critical to helping businesses provide paid leave benefits to more hardworking American families. We urge Congress to take up this proposal, originally enacted as part of the 2017 Tax Cuts and Jobs Act.”