II 

116TH CONGRESS 

1ST SESSION S. 1628 

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 SENATE OF THE UNITED STATES 

MAY 23 (legislative day, MAY 22), 2019 

Mrs. FISCHER (for herself, Mr. KING, and Ms. COLLINS) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

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’’. 

6 SEC. 2. EXTENSION OF EMPLOYER CREDIT FOR PAID FAM7 ILY AND MEDICAL LEAVE. 

8 (a) PROGRAM EXTENSION.—Section 45S(i) of the In9 ternal Revenue Code of 1986 is amended by striking ‘‘De10 cember 31, 2019’’ and inserting ‘‘December 31, 2022’’. 


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•S 1628 IS

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

4 SEC. 3. EMPLOYER REQUIREMENTS FOR RATE OF PAY5 MENT. 

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

7 the Internal Revenue Code of 1986 is amended— 

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

9 first sentence the following: ‘‘For purposes of deter10 mining the rate of payment under the program, any 

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

12 local government or required by State or local law, 

13 determined as a percentage of the wages normally 

14 paid to such employee for services performed for the 

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

16 (2) in paragraph (4)— 

17 (A) by striking ‘‘For purposes of this sec18 tion, any’’ and inserting ‘‘Any’’, and 

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

20 and medical leave provided by the employer’’ 

21 and inserting ‘‘wages taken into account under 

22 subsection (a)’’. 

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

24 this section shall take effect as if included in section 

25 13403 of Public Law 115–97. 


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1 SEC. 4. TECHNICAL CORRECTIONS. 

2 (a) IN GENERAL.—Section 45S of the Internal Rev3 enue Code of 1986 is amended— 

4 (1) in subsection (b)(1), by striking ‘‘credit al5 lowed’’ and inserting ‘‘wages taken into account’’, 

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

7 and inserting the following: 

8 ‘‘(3) AGGREGATION RULE.— 

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

10 subparagraph (B), all persons which are treated 

11 as a single employer under subsections (b) and 

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

13 employer. 

14 ‘‘(B) EXCEPTION.— 

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

16 shall not apply to any person who estab17 lishes to the satisfaction of the Secretary 

18 that such person has a substantial and le19 gitimate business reason for failing to pro20 vide a written policy described in para21 graph (1) or (2). 

22 ‘‘(ii) SUBSTANTIAL AND LEGITIMATE

23 BUSINESS REASON.—For purposes of 

24 clause (i), the term ‘substantial and legiti25 mate business reason’ shall not include the 

26 operation of a separate line of business, 


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1 the rate of wages or category of jobs for 

2 employees (or any similar basis), or the ap3 plication of State or local laws relating to 

4 family and medical leave, but may include 

5 the grouping of employees of a common 

6 law employer.’’, and 

7 (3) in subsection (d)(2), by inserting ‘‘, as de8 termined on an annualized basis (pro-rata for part9 time employees),’’ after ‘‘compensation’’. 

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

11 this section shall take effect as if included in section 

12 13403 of Public Law 115–97. 

13 SEC. 5. GAO STUDY OF IMPACT OF TAX CREDIT TO PRO14 MOTE ACCESS TO PAID FAMILY AND MED15 ICAL LEAVE. 

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

17 Comptroller General of the United States, in consultation 

18 with the Secretary of the Treasury and the Secretary of 

19 Labor, shall— 

20 (1) complete a study that— 

21 (A) examines the effectiveness of the tax 

22 credit for paid family and medical leave author23 ized under section 45S of the Internal Revenue 

24 Code of 1986 in terms of— 


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1 (i) increasing access to paid family 

2 and medical leave among qualifying em3 ployees; 

4 (ii) promoting the creation of new 

5 paid family and medical leave policies 

6 among eligible employers; 

7 (iii) increasing the generosity of exist8 ing paid family and medical leave policies 

9 among eligible employers; and 

10 (iv) incenting employee or employer 

11 behavior that might not otherwise have oc12 curred in the absence of the credit; 

13 (B) provides recommendations for ways to 

14 modify or enhance the tax credit to further pro15 mote access to paid family and medical leave 

16 for qualifying employees; and 

17 (C) provides suggestions of alternative 

18 policies that Federal and State governments 

19 could implement to increase access to paid fam20 ily and medical leave, particularly among quali21 fying employees; and 

22 (2) prepare and submit a report to the Com23 mittee on Finance of the Senate and the Committee 

24 on Ways and Means of the House of Representatives 

25 setting forth the conclusions of the study conducted 


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1 under paragraph (1) in such a manner that the rec2 ommendations included in the report can inform fu3 ture legislative action. 

4 Such report shall also be made publicly available via the 

5 website of the Government Accountability Office. 

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

7 of this section, the Comptroller General of the United 

8 States may request qualitative and quantitative informa9 tion from employers and employees claiming the credit 

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

11 but nothing in this section shall be construed as man12 dating additional reporting requirements for such employ13 ers or employees beyond what is already required by law. 

Æ 


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