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 with-
in 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Paid Family Leave 
Pilot Extension Act’’. 
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SEC. 2. EXTENSION OF EMPLOYER CREDIT FOR PAID FAM-
ILY AND MEDICAL LEAVE. 
(a) PROGRAM EXTENSION.—Section 45S(i) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘De-
cember 31, 2019’’ and inserting ‘‘December 31, 2022’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 3. EMPLOYER REQUIREMENTS FOR RATE OF PAY-
MENT. 
(a) IN GENERAL.—Subsection (c) of section 45S of 
the Internal Revenue Code of 1986 is amended— 
(1) in paragraph (1)(B), by inserting after the 
first sentence the following: ‘‘For purposes of deter-
mining the rate of payment under the program, any 
family and medical leave which is paid by a State or 
local government or required by State or local law, 
determined as a percentage of the wages normally 
paid to such employee for services performed for the 
employer, shall be taken into account.’’, and 
(2) in paragraph (4)— 
(A) by striking ‘‘For purposes of this sec-
tion, any’’ and inserting ‘‘Any’’, and 
(B) by striking ‘‘amount of paid family 
and medical leave provided by the employer’’ 
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and inserting ‘‘wages taken into account under 
subsection (a)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
13403 of Public Law 115–97. 
SEC. 4. TECHNICAL CORRECTIONS. 
(a) IN GENERAL.—Section 45S of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (b)(1), by striking ‘‘credit al-
lowed’’ and inserting ‘‘wages taken into account’’, 
(2) in subsection (c), by striking paragraph (3) 
and inserting the following: 
‘‘(3) AGGREGATION RULE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), all persons which are treated 
as a single employer under subsections (b) and 
(c) of section 414 shall be treated as a single 
employer. 
‘‘(B) EXCEPTION.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply to any person who estab-
lishes to the satisfaction of the Secretary 
that such person has a substantial and le-
gitimate business reason for failing to pro-
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vide a written policy described in para-
graph (1) or (2). 
‘‘(ii) SUBSTANTIAL AND LEGITIMATE 
BUSINESS
REASON.—For 
purposes 
of 
clause (i), the term ‘substantial and legiti-
mate business reason’ shall not include the 
operation of a separate line of business, 
the rate of wages or category of jobs for 
employees (or any similar basis), or the ap-
plication of State or local laws relating to 
family and medical leave, but may include 
the grouping of employees of a common 
law employer.’’, and 
(3) in subsection (d)(2), by inserting ‘‘, as de-
termined on an annualized basis (pro-rata for part- 
time employees),’’ after ‘‘compensation’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
13403 of Public Law 115–97. 
SEC. 5. GAO STUDY OF IMPACT OF TAX CREDIT TO PRO-
MOTE ACCESS TO PAID FAMILY AND MED-
ICAL LEAVE. 
(a) STUDY.—Not later than June 30, 2022, the 
Comptroller General of the United States, in consultation 
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with the Secretary of the Treasury and the Secretary of 
Labor, shall— 
(1) complete a study that— 
(A) examines the effectiveness of the tax 
credit for paid family and medical leave author-
ized under section 45S of the Internal Revenue 
Code of 1986 in terms of— 
(i) increasing access to paid family 
and medical leave among qualifying em-
ployees; 
(ii) promoting the creation of new 
paid family and medical leave policies 
among eligible employers; 
(iii) increasing the generosity of exist-
ing paid family and medical leave policies 
among eligible employers; and 
(iv) incenting employee or employer 
behavior that might not otherwise have oc-
curred in the absence of the credit; 
(B) provides recommendations for ways to 
modify or enhance the tax credit to further pro-
mote access to paid family and medical leave 
for qualifying employees; and 
(C) provides suggestions of alternative 
policies that Federal and State governments 
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could implement to increase access to paid fam-
ily and medical leave, particularly among quali-
fying employees; and 
(2) prepare and submit a report to the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
setting forth the conclusions of the study conducted 
under paragraph (1) in such a manner that the rec-
ommendations included in the report can inform fu-
ture legislative action. 
Such report shall also be made publicly available via the 
website of the Government Accountability Office. 
(b) PROHIBITION.—In carrying out the requirements 
of this section, the Comptroller General of the United 
States may request qualitative and quantitative informa-
tion from employers and employees claiming the credit 
under section 45S of the Internal Revenue Code of 1986, 
but nothing in this section shall be construed as man-
dating additional reporting requirements for such employ-
ers or employees beyond what is already required by law. 
Æ 
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