Paid Family and Medical Leave Tax Credit Extension and Enhancement Act

Enhanced Credit Options for Employers: Under Section 2(a)(1), eligible employers can elect to receive a credit based on the amount of premiums paid for an insurance policy regarding paid family and medical leave. This includes a provision that the rate of payment is determined regardless of whether employees actually take leave during the year (Section 2(a)(1)(B) and (3)).

Increased Flexibility for Employers: The bill allows employers to elect a shorter period of one or more years, specifically stating "or, at the election of the employer, for not less than 6 months" (Section 2(a)(4)(A)).

Small Business Support and Education: The bill mandates that the Small Business Administration and its resource partners, such as women's business centers and veteran outreach centers, conduct outreach to relevant parties (Section 2(c)(1)). This includes providing targeted communications, education, training, and technical assistance regarding the tax credit and the development of written paid family leave policies (Section 2(c)(1)(A)).

Information Accessibility: The Secretary of the Treasury is directed to perform targeted outreach to employers and relevant entities, including providing information through regular communications to payroll services, tax professionals, and small businesses (Section 2(c)(2)).

Restrictions on Deductions: To prevent a double benefit, the bill amends the Internal Revenue Code to ensure no deduction is allowed for the portion of insurance premiums that is equal to the paid family and medical leave credit claimed by the employer (Section 2(b)).

Impact of State or Local Benefits: While leave paid by a State or local government is taken into account when determining the amount of leave provided, it cannot be used to determine the amount of the paid family and medical leave credit (Section 2(a)(3)(4)(A) and (B)).