,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #fbba  ,,in ,,the ,,house ,,of  
,,representatives  ,march #ab1 #bjbj,mr4
 ,harder of ,california introduced the  
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to allow a tax credit for      
employers under the ,internal ,revenue  
,code of #aihf for certain mandated paid
 sick leave4  #a4 ,short title ,this    
,act may be cited as the ,paid ,sick    
,leave ,credit ,act of #bjbj4  #b4      
,payroll credit for required paid sick  
leave  7a7 ,in general ,in the case of a
 employer who elects 7at such time and  
in such manner as the ,secretary may    
provide7 the application of this section
 there shall be allowed as a credit     
against the tax imposed by section      
#caaa7;a7 of the ,internal ,revenue     
,code of #aihf for the first calendar   
quarter beginning after such election an
 amount equal to the excess 7if any7    
of-- 7#a7 #ij percent of the qualified  
sick leave wages paid by an employer by 

reason of the requirements of section #b
 of the ,emergency ,paid ,sick ,leave   
,act2 over  7#b7 the aggregate credits  
allowed under this section with respect 
to all prior calendar quarters4  7b7    
,limitations  7#a7 ,wages taken into    
account ,the amount of qualified sick   
leave wages which may be taken into     
account under subsection 7a7 for the    
taxable year with respect to any        
individual shall not exceed-- 7,a7 for  
any day 7or portion thereof7 the        
individual is on sick leave during the  
taxable year1 #eaa2 and  7,b7 in the    
aggregate for any four consecutive      
calendar quarters1 #g1aef4  7#b7 ,credit
 limited to certain employment taxes    
,the credit allowed by subsection 7a7   
with respect to any calendar quarter    
shall not exceed the tax imposed under  
section #caaa7;a7 for such calendar     
quarter on the wages paid with respect  
to the employment of all individuals in 
the employ of the employer4  7#c7       
,carryover of unused credit ,if the     

amount of the credit under subsection   
7a7 exceeds the limitation of paragraph 
7#b7 for any calendar quarter1 such     
excess shall be carried to the          
succeeding calendar quarter and allowed 
as a credit under subsection 7a7 for    
such quarter4  7c7 ,qualified sick leave
 wages ,for purposes of this section--  
7#a7 ,in general ,the term qualified    
sick leave wages means wages 7as defined
 in section #ea7;c77#a7 of the ,internal
 ,revenue ,code of #aihf1 but without   
regard to section #ccjf7;b77#b77;,b7 of 
such ,code7 paid or incurred by an      
employer to an employee with respect to 
employment for a period during which    
such employee is on sick leave with the 
employer4  7#b7 ,only additional paid   
sick time taken into account ,in the    
case of any employer with a sick leave  
plan in effect on ,march #ab1 #bjbj1    
only wages in excess of the wages the   
employer would have otherwise paid such 
employee 7but for section #b of the     
,emergency ,paid ,sick ,leave ,act7     

under such plan shall be taken into     
account4  7#c7 ,sick leave wages must   
meet requirements of ,act ,wages shall  
not be taken into account under this    
section unless such wages meet the      
requirements of1 and are required by1   
section #b of the ,emergency ,paid ,sick
 ,leave ,act4  7d7 ,special rules  7#a7 
,certain rules to apply ,for purposes of
 this section1 rules similar to the     
rules of sections #ea7;i77#a7 and #eb of
 the ,internal ,revenue ,code of #aihf  
shall apply4  7#b7 ,related employers   
,for purposes of this section1 all      
persons treated as a single employer    
under subsection 7b71 7c71 7m71 or 7o7  
of section #dad of such ,code shall be  
treated as #a employer4  7#c7 ,denial of
 double benefit ,no deduction shall be  
allowed under such ,code for the portion
 of wages paid or incurred for the      
taxable year which is equal to the sum  
of the credits determined under this    
section for calendar quarters ending in 
such taxable year4 ,rules similar to the

 rules under the second sentence of     
section #bhj;,c7a7 of such ,code shall  
apply for purposes of the preceding     
sentence4  7e7 ,transfers to ,federal   
,old-,age and ,survivors ,insurance     
,trust ,fund ,there are hereby          
appropriated to the ,federal ,old-,age  
and ,survivors ,trust ,fund and the     
,federal ,disability ,insurance ,trust  
,fund established under section #bja of 
the ,social ,security ,act 7#db         
,u4,s4,c4 #dja7 amounts equal to the    
reduction in revenues to the ,treasury  
by reason of subsection 7a74 ,amounts   
appropriated by the preceding sentence  
shall be transferred from the general   
fund at such times and in such manner as
 to replicate to the extent possible the
 transfers which would have occurred to 
such ,trust ,fund had such paragraphs   
not been enacted4  7f7 ,regulations ,the
 ,secretary shall prescribe such        
regulations as may be necessary to carry
 out the purposes of this subsection1   
including-- 7#a7 regulations to prevent 

the avoidance of the purposes of the    
limitations and aggregation rules under 
this subsection through the use of      
successor companies or other means1     
7#b7 regulations to minimize compliance 
and record-keeping burdens under this   
subsection1 and  7#c7 regulations for   
recapturing the benefit of credits      
determined under this section in cases  
where there is a subsequent adjustment  
to the credit determined under          
subsection 7a74  7g7 ,termination ,this 
section shall not apply to any wages    
paid more than #b years after the date  
of the effective date of the ,emergency 
,paid ,sick ,leave ,act4