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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | December 27, 2023 02:22 PM |
|---|---|
| From: | Representative Ryan E. Mackenzie |
| To: | All House members |
| Subject: | PA Family and Medical Leave Tax Credit |
| I am preparing to introduce legislation that will amend the Tax Reform Code to create the Paid Family and Medical Leave Tax Credit Program. This new tax credit program will supplement the existing federal tax incentives for providing paid family and medical leave to employees. The federal tax credit program, which was enacted and extended with broad bipartisan majorities in both houses of Congress, provides a credit to employers who provide a paid leave benefit of at least 50% of an employee’s wages for qualifying family and medical leave purposes. The federal tax credit ranges from 12.5% of the amount paid to the employee (for replacing 50% of wages) to 25% of the amount paid to the employee (for replacing 100% of wages). My bill will provide a matching state tax credit to employers who received the federal tax credit for providing paid family and medical leave benefits to employees. To be clear, the match will only include the amount of the credit received for providing this paid leave to employees in Pennsylvania, so a large company that operates in many states will not be able to get any state tax credits for leave paid to employees outside of our Commonwealth. The tax credits will be offered on a first-come, first-served basis, and the total amount of credits in any year will be capped at $100 million. This proposal represents what I believe to be the most reasonable way for the General Assembly to expand access to paid family and medical leave in Pennsylvania. The cost will be predictable, and this bill does not raise any taxes or represent a mandate on any employer. I hope you will join me as a cosponsor. |
Introduced as HB2000