H.R.996 - Paid Family and Medical Leave Tax Credit Extension and Enhancement Act (119th Congress)
Summary
H.R.996, the "Paid Family and Medical Leave Tax Credit Extension and Enhancement Act," aims to modify Section 45S of the Internal Revenue Code of 1986. The bill seeks to enhance the existing paid family and medical leave credit for eligible employers. It introduces an alternative credit calculation based on insurance policy premiums and includes provisions for outreach and education regarding the credit.
Expected Effects
The likely effect of this bill is an increase in the utilization of the paid family and medical leave tax credit by employers. This could lead to more employers offering paid family and medical leave to their employees. The outreach programs may increase awareness and understanding of the credit.
Potential Benefits
- Encourages employers to offer paid family and medical leave.
- Provides financial relief to employers through tax credits.
- Simplifies credit calculation by including insurance premiums.
- Expands eligibility by allowing credit for shorter employment periods (6 months).
- Increases awareness through SBA and IRS outreach programs.
Potential Disadvantages
- Potential for increased complexity in tax code due to amendments.
- Possible administrative burden for employers to track and claim the credit.
- The cost of the tax credit could increase government debt if not offset by other savings.
- May not benefit employees of very small businesses if those businesses do not qualify or participate.
- Potential for employers to substitute existing leave policies with those qualifying for the credit, without necessarily increasing overall benefits to employees.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States (Article I, Section 8, Clause 1). The bill does not appear to infringe upon any specific individual rights or liberties outlined in the Bill of Rights. The focus on tax credits falls within the enumerated powers of Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).