I 

116TH CONGRESS 

1ST SESSION H. R. 4964 

To amend the Internal Revenue Code of 1986 to extend the employer credit 

for paid family and medical leave, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 31, 2019 

Mr. KELLY of Pennsylvania introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committee 

on Education and Labor, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the employer credit for paid family and medical leave, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Paid Family Leave 

5 Pilot Extension Act’’. 


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1 SEC. 2. EXTENSION OF EMPLOYER CREDIT FOR PAID FAM2 ILY AND MEDICAL LEAVE. 

3 (a) PROGRAM EXTENSION.—Section 45S(i) of the In4 ternal Revenue Code of 1986 is amended by striking ‘‘De5 cember 31, 2019’’ and inserting ‘‘December 31, 2022’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2019. 

9 SEC. 3. EMPLOYER REQUIREMENTS FOR RATE OF PAY10 MENT. 

11 (a) IN GENERAL.—Subsection (c) of section 45S of 

12 the Internal Revenue Code of 1986 is amended— 

13 (1) in paragraph (1)(B), by inserting after the 

14 first sentence the following: ‘‘For purposes of deter15 mining the rate of payment under the program, any 

16 family and medical leave which is paid by a State or 

17 local government or required by State or local law, 

18 determined as a percentage of the wages normally 

19 paid to such employee for services performed for the 

20 employer, shall be taken into account.’’, and 

21 (2) in paragraph (4)— 

22 (A) by striking ‘‘For purposes of this sec23 tion, any’’ and inserting ‘‘Any’’, and 

24 (B) by striking ‘‘amount of paid family 

25 and medical leave provided by the employer’’ 


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1 and inserting ‘‘wages taken into account under 

2 subsection (a)’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect as if included in section 

5 13403 of Public Law 115–97. 

6 SEC. 4. TECHNICAL CORRECTIONS. 

7 (a) IN GENERAL.—Section 45S of the Internal Rev8 enue Code of 1986 is amended— 

9 (1) in subsection (b)(1), by striking ‘‘credit al10 lowed’’ and inserting ‘‘wages taken into account’’, 

11 (2) in subsection (c), by striking paragraph (3) 

12 and inserting the following: 

13 ‘‘(3) AGGREGATION RULE.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B), all persons which are treated 

16 as a single employer under subsections (b) and 

17 (c) of section 414 shall be treated as a single 

18 employer. 

19 ‘‘(B) EXCEPTION.— 

20 ‘‘(i) IN GENERAL.—Subparagraph (A) 

21 shall not apply to any person who estab22 lishes to the satisfaction of the Secretary 

23 that such person has a substantial and le24 gitimate business reason for failing to proVerDate Sep 11 2014 04:01 Nov 08, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4964.IH H4964

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1 vide a written policy described in para2 graph (1) or (2). 

3 ‘‘(ii) SUBSTANTIAL AND LEGITIMATE

4 BUSINESS REASON.—For purposes of 

5 clause (i), the term ‘substantial and legiti6 mate business reason’ shall not include the 

7 operation of a separate line of business, 

8 the rate of wages or category of jobs for 

9 employees (or any similar basis), or the ap10 plication of State or local laws relating to 

11 family and medical leave, but may include 

12 the grouping of employees of a common 

13 law employer.’’, and 

14 (3) in subsection (d)(2), by inserting ‘‘, as de15 termined on an annualized basis (pro-rata for part16 time employees),’’ after ‘‘compensation’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect as if included in section 

19 13403 of Public Law 115–97. 

20 SEC. 5. GAO STUDY OF IMPACT OF TAX CREDIT TO PRO21 MOTE ACCESS TO PAID FAMILY AND MED22 ICAL LEAVE. 

23 (a) STUDY.—Not later than June 30, 2022, the 

24 Comptroller General of the United States, in consultation 


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1 with the Secretary of the Treasury and the Secretary of 

2 Labor, shall— 

3 (1) complete a study that— 

4 (A) examines the effectiveness of the tax 

5 credit for paid family and medical leave author6 ized under section 45S of the Internal Revenue 

7 Code of 1986 in terms of— 

8 (i) increasing access to paid family 

9 and medical leave among qualifying em10 ployees; 

11 (ii) promoting the creation of new 

12 paid family and medical leave policies 

13 among eligible employers; 

14 (iii) increasing the generosity of exist15 ing paid family and medical leave policies 

16 among eligible employers; and 

17 (iv) incenting employee or employer 

18 behavior that might not otherwise have oc19 curred in the absence of the credit; 

20 (B) provides recommendations for ways to 

21 modify or enhance the tax credit to further pro22 mote access to paid family and medical leave 

23 for qualifying employees; and 

24 (C) provides suggestions of alternative 

25 policies that Federal and State governments 


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1 could implement to increase access to paid fam2 ily and medical leave, particularly among quali3 fying employees; and 

4 (2) prepare and submit a report to the Com5 mittee on Finance of the Senate and the Committee 

6 on Ways and Means of the House of Representatives 

7 setting forth the conclusions of the study conducted 

8 under paragraph (1) in such a manner that the rec9 ommendations included in the report can inform fu10 ture legislative action. 

11 Such report shall also be made publicly available via the 

12 website of the Government Accountability Office. 

13 (b) PROHIBITION.—In carrying out the requirements 

14 of this section, the Comptroller General of the United 

15 States may request qualitative and quantitative informa16 tion from employers and employees claiming the credit 

17 under section 45S of the Internal Revenue Code of 1986, 

18 but nothing in this section shall be construed as man19 dating additional reporting requirements for such employ20 ers or employees beyond what is already required by law. 

Æ 


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