I 
113TH CONGRESS 
2D SESSION 
H. R. 5173 
To amend the Internal Revenue Code of 1986 to provide a credit to employers 
who provide paid family and medical leave. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 23, 2014 
Mr. CASSIDY introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit to employers who provide paid family and med-
ical leave. 
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 ‘‘Strong Families Act’’. 
SEC. 2. EMPLOYER CREDIT FOR PAID FAMILY AND MED-
ICAL LEAVE. 
(a) IN GENERAL.— 
(1) ALLOWANCE
OF
CREDIT.—Subpart D of 
part IV of subchapter A of chapter 1 of the Internal 
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Revenue Code of 1986 is amended by adding at the 
end the following new section: 
‘‘SEC. 45S. EMPLOYER CREDIT FOR PAID FAMILY AND MED-
ICAL LEAVE. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible employer, the paid family and med-
ical leave credit is an amount equal to 25 percent of the 
amount of wages paid to qualifying employees during any 
period in which such employees are on family and medical 
leave. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) with respect to any employee for any 
taxable year shall not exceed the lesser of— 
‘‘(A) $4,000, or 
‘‘(B) the product of the wages normally 
paid to such employee for each hour (or frac-
tion thereof) of services performed for the em-
ployer and the number of hours (or fraction 
thereof) for which family and medical leave is 
taken. 
For purposes of subparagraph (B), in the case of 
any employee who is not paid on an hourly basis, the 
wages of such employee shall be prorated to an 
hourly basis under regulations established by the 
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Secretary, in consultation with the Secretary of 
Labor. 
‘‘(2) MAXIMUM AMOUNT OF LEAVE SUBJECT TO 
CREDIT.—The amount of family and medical leave 
that may be taken into account with respect to any 
employee under subsection (a) for any taxable year 
shall not exceed 12 weeks. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible em-
ployer’ means any employer who has in place a pol-
icy that meets the following requirements: 
‘‘(A) The policy provides— 
‘‘(i) all qualifying full-time employees 
with not less than 4 weeks of annual paid 
family and medical leave, and 
‘‘(ii) all qualifying employees who are 
not full-time employees with an amount of 
annual paid family and medical leave that 
bears the same ratio to 4 weeks as— 
‘‘(I) the number of hours the em-
ployee is expected to work during any 
week, bears to 
‘‘(II) the number of hours an 
equivalent qualifying full-time em-
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ployee is expected to work during the 
week. 
‘‘(B) The policy requires that the rate of 
payment under the program is not less than 
100 percent of the wages normally paid to such 
employee for services performed for the em-
ployer. 
‘‘(2) SPECIAL
RULE
FOR
CERTAIN
EMPLOY-
ERS.— 
‘‘(A) IN
GENERAL.—An added employer 
shall not be treated as an eligible employer un-
less such employer provides paid family and 
medical leave under a policy with a provision 
that states that the employer— 
‘‘(i) will not interfere with, restrain, 
or deny the exercise of or the attempt to 
exercise, any right provided under the pol-
icy, and 
‘‘(ii) will not discharge or in any other 
manner discriminate against any individual 
for opposing any practice prohibited by the 
policy. 
‘‘(B) ADDED
EMPLOYER; 
ADDED
EM-
PLOYEE.—For purposes of this paragraph— 
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‘‘(i) ADDED
EMPLOYEE.—The term 
‘added employee’ means a qualifying em-
ployee who is not covered by title I of the 
Family and Medical Leave Act of 1993. 
‘‘(ii) ADDED
EMPLOYER.—The term 
‘added employer’ means an eligible em-
ployer (determined without regard to this 
paragraph), whether or not covered by that 
title I, who offers paid family and medical 
leave to added employees. 
‘‘(3) TREATMENT OF STATE-PAID BENEFITS.— 
For purposes of paragraph (1), any leave which is 
paid by a State or local government shall not be 
taken into account in determining the amount of 
paid family and medical leave provided by the em-
ployer. 
‘‘(4) NO
INFERENCE.—Nothing in this sub-
section shall be construed as subjecting an employer 
to any penalty, liability, or other consequence (other 
than ineligibility for the credit allowed by reason of 
subsection (a)) for failure to comply with the re-
quirements of this subsection. 
‘‘(d) QUALIFYING EMPLOYEES.—For purposes of 
this section, the term ‘qualifying employee’ means any em-
ployee (as defined in section 3(e) of the Fair Labor Stand-
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ards Act of 1938) who has been employed by the employer 
for 1 year or more. 
‘‘(e) FAMILY AND MEDICAL LEAVE.—For purposes 
of this section, the term ‘family and medical leave’ means 
leave for any purpose described under subparagraph (A), 
(B), (C), (D), or (E) of paragraph (1), or paragraph (3), 
of section 102(a) of the Family and Medical Leave Act 
of 1993, whether the leave is provided under that Act or 
by a policy of the employer. Such term shall not include 
any leave provided as paid vacation leave, personal leave, 
or medical or sick leave (within the meaning of those 3 
terms under section 102(d)(2) of that Act). 
‘‘(f) WAGES.—For purposes of this section, the term 
‘wages’ has the meaning given such term by subsection 
(b) of section 3306 (determined without regard to any dol-
lar limitation contained in such section). Such term shall 
not include any amount taken into account for purposes 
of determining any other credit allowed under this sub-
part. 
‘‘(g) ELECTION TO HAVE CREDIT NOT APPLY.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
have this section not apply for any taxable year. 
‘‘(2) OTHER RULES.—Rules similar to the rules 
of paragraphs (2) and (3) of section 51(j) shall 
apply for purposes of this subsection.’’. 
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(b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘plus’’ at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(37) in the case of an eligible employer (as de-
fined in section 45S(c)), the paid family and medical 
leave credit determined under section 45S(a).’’. 
(c) CREDIT ALLOWED AGAINST AMT.—Subpara-
graph (B) of section 38(c)(4) of the Internal Revenue 
Code of 1986 is amended by redesignating clauses (vii) 
through (ix) as clauses (vii) through (x), respectively, and 
by inserting after clause (vi) the following new clause: 
‘‘(vii) the credit determined under sec-
tion 45S,’’. 
(d) CONFORMING AMENDMENTS.— 
(1) DENIAL
OF
DOUBLE
BENEFIT.—Section 
280C(a) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘45S(a),’’ after ‘‘45P(a),’’. 
(2) ELECTION TO HAVE CREDIT NOT APPLY.— 
Section 6501(m) of such Code is amended by insert-
ing ‘‘45S(g),’’ after ‘‘45H(g),’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
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chapter 1 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 45S. Employer credit for paid family and medical leave.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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