The House Ways & Means Republicans’ reconciliation bill, which underwent markup on May 13, includes an expansion and extension of the 45S paid leave tax credit. Passed in 2017 and set to sunset this year, the tax credit allows employers to receive a small reimbursement for voluntarily providing as little as two weeks of paid leave at only a fraction of workers’ wages.
Even with these highly flexible parameters, Dept. of Treasury data shows that only a little over 1,000 businesses even utilize this credit currently, mostly large corporations.
The following is a statement from A Better Balance’s President, Inimai Chettiar:
“The current tax credit has rewarded a small number of companies with more than a billion dollars of revenue. Tax credits have not been shown to incentivize employers to provide paid leave and they are not a true solution – not for workers, not for families, not for small businesses. What the U.S. needs is a comprehensive and inclusive paid family and medical leave program, one that provides at least 12 weeks of leave for workers as they welcome a new child, care for a sick loved one, or navigate a medical issue of one’s own. Until then, workers will be forced to sacrifice critical income during life’s defining moments.”
