,,ii  #aafth ,,congress  #ast ,session  
,s4 #bdcg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #a1    
#bjai,mr4 ,young introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to establish a  
refundable tax credit for parents who   
take leave from employment following the
 birth or adoption of a child4  #a4     
,short title ,this ,act may be cited as 
the ,support ,working ,families ,act4   
#b4 ,parental ,leave ,tax ,credit  7a7  
,in general ,subpart ,c of part ,,iv of 
subchapter ,a of chapter #a of subtitle 
,a of the ,internal ,revenue ,code of   
#aihf is amended by inserting after     
section #cf;,b the following new        
section3  #cf;,c4 ,parental ,leave      
,credit  7a7 ,allowance of credit  7#a7 
,in general ,there shall be allowed as a
 credit against the tax imposed by this 
subtitle for the taxable year an amount 
equal to the sum of--  7,a7 the current 

year parental leave credit1 plus  7,b7  
the parental leave credit carryback     
carried to such taxable year4  7#b7     
,current year parental leave credit     
7,a7 ,in general ,subject to            
subparagraphs 7,b7 and 7,c71 the amount 
of the current year parental leave      
credit for the taxable year shall be    
equal to the product of--  7i7 the total
 number of weeks of parental leave taken
 during the benefit period by an        
individual described in subsection      
7c77#a77;,a7 which are completed within 
such taxable year1 multiplied by  7ii7  
an amount equal to the replacement      
percentage 7as determined for each week 
of parental leave pursuant to subsection
 7b77#a77 of the average weekly wage    
rate for such individual4  7,b7         
,limitation ,the current year parental  
leave credit for any taxable year shall 
not exceed the lesser of-- 7i7 an amount
 equal to--  7,i7 the amount determined 
under subparagraph 7,a7 7determined as  
if the replacement percentage were #ajj 

percent71 minus  7,,ii7 an amount equal 
to the sum of any paid parental or      
medical leave benefits which are        
provided to the individual for any weeks
 included under clause 7i7 of such      
subparagraph--  7aa7 pursuant to any law
 or plan of a ,state or a political     
subdivision thereof1 or  7bb7 by the    
employer of such individual1 or  7ii7   
#f1jjj4  7,c7 ,reduction in benefit     
amount on account of receipt of certain 
benefits ,the current year parental     
leave credit for any taxable year 7after
 application of subparagraph 7,b77 shall
 be reduced by the amount1 if any1 in   
certain benefits as may be otherwise    
received by an individual for any weeks 
included under subparagraph 7,a77i74    
,for purposes of the preceding sentence1
 certain benefits include--  7i7        
periodic benefits on account of such    
individual's total or partial disability
 under a workmen's compensation law or  
plan of the ,united ,states or a ,state1
  7ii7 periodic benefits on account of  

an individual's employment status under 
an unemployment law or plan of the      
,united ,states or a ,state1 and  7iii7 
such other benefits as determined under 
regulations issued by the ,secretary4   
7#c7 ,parental leave credit carryback   
,in the case of an individual who elects
 not to apply the current year parental 
leave credit to the taxable year which  
includes the weeks of parental leave    
described in subparagraph 7,a77i71 the  
amount of such credit--  7,a7 shall be  
reduced to zero for such taxable year1  
and  7,b7 shall be a parental leave     
credit carryback to the preceding       
taxable year4  7b7 ,determination of    
credit amount  7#a7 ,replacement        
percentage ,the replacement percentage  
shall be the amount1 expressed as a     
percentage1 which has been elected by   
the individual 7in such manner and at   
such time as is prescribed by the       
,secretary7 for each week of parental   
leave described in paragraph            
7#b77;,a77i7 of subsection 7a7 for      

purposes of determining the credit      
allowed under such subsection1 provided 
that--  7,a7 such amount is not less    
than #dj percent and not greater than   
#ij percent1 and  7,b7 for each week of 
parental leave described in paragraph   
7#b77;,a77i7 of subsection 7a71 such    
amount does not result in a credit      
allowed under such subsection that      
exceeds--  7i7 the average weekly wage  
rate for such individual1 minus  7ii7   
any amounts described in paragraph      
7#b77;,b77i77,,ii7 of such subsection   
which are provided to the individual for
 such week4  7#b7 ,average weekly wage  
rate  ,the average weekly wage rate     
shall be an amount equal to the greater 
of--  7,a7 the annual average amount of 
the individual's wages and              
self-employment income for the period of
 the #c calendar years preceding the    
calendar year in which the parental     
leave is taken by the individual1       
prorated on a weekly basis1 or  7,b7 the
 amount of the individual's wages and   

self-employment income for the calendar 
year preceding the calendar year in     
which the parental leave is taken by the
 individual1 prorated on a weekly basis4
  7#c7 ,benefit period ,the benefit     
period for an individual shall be the   
period of weeks-- 7,a7 beginning with   
the latter of--  7i7 the first week in  
which the individual satisfies the      
requirements under subsection           
7c77#a77;,a71 or  7ii7 the first week-- 
7,i7 in which the individual satisfies  
the requirements under such subsection1 
and  7,,ii7 which is not less than #a   
year after the completion of any        
previous benefit period1 and  7,b7      
ending on the date that is #a year after
 the date of the birth or adoption of   
the child4  7c7 ,eligibility            
requirements  7#a7 ,employment  7,a7 ,in
 general ,an individual is described in 
this subparagraph if1 on the date of the
 birth or adoption of the child1 such   
individual--  7i7 is a parent of the    
child1  7ii7 is employed and1 during the

 #fd-week period preceding such date1   
has been employed for not less than #eb 
weeks1 and  7iii7 has worked not less   
than a total of #a1jjj hours during the 
#eb-week period described in clause     
7ii74  7,b7 ,determination of employment
 ,the ,secretary1 in consultation with  
the ,secretary of ,labor1 shall         
prescribe such regulations1 rules1 and  
guidance as may be necessary to         
determine the length of employment and  
hours of service of an individual1      
including rules for the application of  
this paragraph to individuals who are   
not compensated on an hourly basis4     
7#b7 ,additional information  7,a7 ,in  
general ,no credit shall be allowed     
under subsection 7a7 for any taxable    
year unless the individual includes the 
following information on the return of  
tax for such taxable year 7or through   
the program established under section   
#b7;b7 of the ,support ,working         
,families ,act73  7i7 ,an attestation   
from the individual that such           

individual-- 7,i7 if the individual has 
an employer1 has provided such employer 
with written notice of the individual's 
intention to take parental leave1       
7,,ii7 has satisfied the requirements   
under clauses 7ii7 and 7iii7 of         
paragraph 7#a77;,a71  7,,iii7 will be   
taking leave from employment for each   
week of parental leave taken during the 
benefit period1 and  7,,iv7 intends to  
maintain the same principal place of    
abode as the child for more than  of the
 #ab-month period following the date of 
the birth or adoption of the child4     
7ii7 ,any information1 as determined    
necessary by the ,secretary1 regarding  
any paid parental or medical leave      
benefits described in subsection        
7a77#b77;,b77i77,,ii7 which are provided
 to the individual4  7iii7 ,the name of 
the child of the individual and the date
 of the birth or adoption of the child4 
7iv7 ,subject to subparagraph 7,b71 the 
weeks of parental leave taken during the
 benefit period4  7v7 ,the social       

security number of the individual4  7vi7
 ,subject to subparagraph 7,c71 the     
social security number of the child4    
7vii7 ,subject to subparagraph 7,d71 a  
copy of the birth certificate or other  
documentation demonstrating that the    
individual is the parent or legal       
guardian of the child4  7,b7 ,weeks of  
parental leave ,for purposes of the     
credit allowed under subsection 7a7--   
7i7 any weeks of parental leave taken   
during the benefit period for which such
 credit is being claimed shall be a full
 workweek1 and  7ii7 the total number of
 weeks of parental leave taken by an    
individual during the benefit period    
shall not be less than #d weeks or      
greater than #ab weeks4  7,c7 ,social   
security number  7i7 ,adoption  7,i7 ,in
 general ,in the case of an individual  
who legally adopts a child1 if such     
child has not received a social security
 number at the time of the filing of the
 return of tax described in subparagraph
 7,a71 the parent of such child may be  

allowed the credit under subsection 7a71
 provided that--  7aa7 the ,adoption    
,taxpayer ,identification ,number for   
such child is included on the return of 
tax described in subparagraph 7,a71 and 
7bb7 the social security number for such
 child is provided to the ,secretary not
 later than #ae months after the date of
 the adoption of such child4  7,,ii7    
,notice ,in the case of a child         
described in subclause 7,i71 the        
,secretary shall provide notice of the  
requirement under item 7bb7 of such     
subclause to the parent of such child-- 
7aa7 at the time that the credit allowed
 under subsection 7a7 is refunded or    
otherwise provided to such parent1 and  
7bb7 on the date that is #ab months     
after the date of the adoption of such  
child4  7,,iii7 ,rescission  7aa7 ,in   
general ,in the case of an individual   
who is the parent of a child described  
in subclause 7,i7 and subsequently fails
 to provide a social security number for
 such child to the ,secretary during the

 period described in subclause          
7,,ii77bb71 the tax imposed by this     
chapter for the applicable taxable year 
shall be increased by #ajj percent of   
the amount of the credit allowed under  
subsection 7a7 to such individual for   
any parental leave claimed with respect 
to such child4  7bb7 ,applicable taxable
 year ,the term applicable taxable year 
means the taxable year which includes   
the date that is #ae months after the   
date of the adoption of the child4  7ii7
 ,religious objections ,the ,secretary1 
in coordination with the ,commissioner  
of ,social ,security1 shall prescribe   
such regulations1 rules1 and guidance as
 may be necessary to apply the          
requirements under this paragraph       
relating to social security numbers for 
individuals who have religious          
objections to obtaining a social        
security number for themselves or their 
children4  7,d7 ,birth certificate or   
other documentation  7i7 ,in general ,in
 the case of a parent who has not       

received the certificate or             
documentation described in clause 7vii7 
of subparagraph 7,a7 for their child at 
the time of the filing of the return of 
tax described in such subparagraph1 the 
parent may be allowed the credit under  
subsection 7a71 provided that such      
certificate or documentation is provided
 to the ,secretary not later than #ae   
months after the date of the birth or   
adoption of such child4  7ii7 ,notice   
and rescission ,rules similar to the    
rules of subclauses 7,,ii7 and 7,,iii7  
of subparagraph 7,c77i7 shall apply for 
purposes of this subparagraph4  7#c7    
,ineligibility2 disqualification  7,a7  
,ineligibility for benefit ,no credit   
shall be allowed under subsection 7a7   
for any taxable year during which the   
individual is entitled to--  7i7        
disability insurance benefits under     
section #bbc of the ,social ,security   
,act 7#db ,u4,s4,c4 #dbc7 or a similar  
permanent disability program under any  
law or plan of a ,state or political    

subdivision or instrumentality of a     
,state 7as such terms are used in       
section #bah of the ,social ,security   
,act 7#db ,u4,s4,c4 #dah771  7ii7       
monthly insurance benefits under section
 #bjb of such ,act 7#db ,u4,s4,c4 #djb7 
based on such individual's disability   
7as defined in section #bbc7;d7 of such 
,act 7#db ,u4,s4,c4 #dbc7;d7771 or      
7iii7 benefits under title ,,xvi of such
 ,act 7#db ,u4,s4,c4 #acha et seq47     
based on such individual's status as a  
disabled individual 7as determined under
 section #afad of such ,act 7#db        
,u4,s4,c4 #achb;c774  7,b7 ,restrictions
 on individuals who improperly claimed  
credit in prior year  7i7 ,prior        
fraudulent or reckless claims  7,i7 ,in 
general ,no credit shall be allowed     
under subsection 7a7 for any taxable    
year in the disallowance period4  7,,ii7
 ,disallowance period ,for purposes of  
subclause 7,i71 the disallowance period 
is--  7aa7 the period of #aj taxable    
years after the most recent taxable year

 for which there was a final            
determination that the individual's     
claim of credit under this section was  
due to fraud1 and  7bb7 the period of #b
 taxable years after the most recent    
taxable year for which there was a final
 determination that-- 7,,aa7 the        
individual's claim of credit under this 
section was due to reckless or          
intentional disregard of rules and      
regulations 7but not due to fraud71 or  
7,,bb7 the individual claimed the credit
 under this section and subsequently    
failed to provide the ,secretary with   
the social security number or           
documentation described in clause 7vi7  
or 7vii7 of paragraph 7#c77;,a7 during  
the #ae-month period following the date 
of the brith or adoption of their child1
 as required under subparagraphs 7,c7   
and 7,d7 of paragraph 7#c74  7ii7       
,improper prior claims ,in the case of  
an individual who is denied the credit  
under this section for any taxable year 
as a result of the deficiency procedures

 under subchapter ,b of chapter #fc1 no 
credit shall be allowed under this      
section for any subsequent taxable year 
unless the individual provides such     
information as the ,secretary may       
require to demonstrate eligibility for  
such credit4  7d7 ,relationship with    
,state law2 employer benefits2          
prohibited acts  7#a7 ,in general ,this 
section does not preempt or supercede   
any provision of ,state or local law    
that authorizes a ,state or local       
municipality to provide benefits or     
payments to any individual for parental 
leave taken by such individual4  7#b7   
,greater benefits allowed ,nothing in   
this ,act shall be construed to diminish
 the obligation of an employer to comply
 with any contract1 collective          
bargaining agreement1 or any employment 
benefit program or plan that provides   
greater paid parental leave rights to   
employees than the credit allowed under 
this section4  7#c7 ,prohibited acts ,it
 shall be unlawful for any person to    

discharge or in any other manner        
discriminate against an individual      
because the individual has claimed1     
indicated an intent to claim1 or        
received the credit allowed under this  
section4  7e7 ,inflation adjustment     
7#a7 ,in general ,in the case of any    
taxable year beginning after #bjbj1 the 
dollar amount in subsection             
7a77#b77;,b77ii7 shall be increased by  
an amount equal to--  7,a7 such dollar  
amount1 multiplied by  7,b7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for such       
calendar year by substituting calendar  
year #bjai for calendar year #bjaf in   
subparagraph 7,a77ii7 thereof4  7#b7    
,rounding ,if any increase determined   
under paragraph 7#a7 is not a multiple  
of #ej1 such increase shall be rounded  
to the nearest multiple of #ej4  7f7    
,recapture of credit  7#a7 ,in general  
,if a credit under subsection 7a7 is    
allowed to a taxpayer1 the tax imposed  
by this chapter shall be increased by   

#bj percent of the applicable amount for
 each taxable year in the recapture     
period4  7#b7 ,applicable amount  7,a7  
,in general ,for purposes of this       
subsection1 the applicable amount shall 
be equal to-- 7i7 the amount of the     
credit allowed under subsection 7a71    
minus  7ii7 the amount of payments made 
by the taxpayer during the prepayment   
period4  7,b7 ,prepayment period  7i7   
,in general ,for purposes of this       
paragraph1 the term prepayment period   
means the period of #c taxable years    
subsequent to the taxable year in which 
the credit under subsection 7a7 is      
allowed4  7ii7 ,development of          
prepayment mechanism ,for purposes of   
subparagraph 7,a77ii71 the ,secretary   
shall establish appropriate procedures  
and mechanisms to allow taxpayers to    
reduce the amount of the tax imposed    
under paragraph 7#a7 by making payments 
during the prepayment period4  7#c7     
,recapture period ,for purposes of this 
subsection1 the term recapture period   

means the period of #e taxable years    
subsequent to the prepayment period4    
7#d7 ,return requirement ,if the tax    
imposed by this chapter for the taxable 
year is increased under this subsection1
 the taxpayer shall1 notwithstanding    
section #fjab1 be required to file a    
return with respect to the taxes imposed
 under this subtitle4  7#e7 ,joint      
returns ,in the case of a credit allowed
 under subsection 7a7 with respect to a 
joint return1 half of such credit shall 
be treated as having been allowed to    
each individual filing such return for  
purposes of this subsection4  7#f7      
,exception ,this subsection shall not   
apply to any taxable year ending after  
the date of the death of the individual 
allowed the credit under subsection 7a74
  7g7 ,definitions ,in this section3    
7#a7 ,child ,the term child means a     
biological or legally adopted child who 
has not attained #ah years of age4  7#b7
 ,parent ,the term parent means-- 7,a7  
the biological mother or father of a    

child1 or  7,b7 an individual who       
legally adopts a child1  who is the     
legal guardian of the child and who     
intends to maintain the same principal  
place of abode as the child for more    
than  of the #ab-month period following 
the date of the birth or adoption of the
 child4  7#c7 ,parental leave ,the term 
parental leave means any period of leave
 from employment which is taken by a    
parent to provide care for a child4  4  
7b7 ,pre-,calculation of parental leave 
credit ,not later than ,january #a1     
#bjbj1 the ,secretary of the ,treasury  
or the ,secretary's delegate 7referred  
to in this subsection and subsection 7c7
 as the ,secretary7 shall establish a   
program1 to be made available online and
 through such other methods as is       
determined appropriate by the           
,secretary1 to allow individuals who    
intend to take parental leave to--  7#a7
 determine their average weekly wage    
rate 7as defined in subsection 7b77#b7  
of section #cf;,c of the ,internal      

,revenue ,code of #aihf72  7#b7         
determine whether they satisfy the      
requirements under clauses 7ii7 and     
7iii7 of section #cf;,c7c77#a77;,a7 of  
such ,code and1 if such requirements are
 not satisfied1 determine the number of 
hours or weeks needed to satisfy such   
requirements prior to the expected date 
of the birth or adoption of a child2    
7#c7 calculate-- 7,a7 the amount of the 
parental leave credit under section     
#cf;,c of such ,code based on different 
replacement percentages 7as described in
 subsection 7b77#a7 of such section72   
and  7,b7 the amount of any increase in 
taxes pursuant to subsection 7f7 of such
 section based on different amounts of  
payments made by the individual during  
the prepayment period 7as defined in    
paragraph 7#b77;,b7 of such subsection72
 and  7#d7 provide the ,secretary with  
any information required under          
subsection 7c77#b77;,a7 of section      
#cf;,c of the ,internal ,revenue ,code  
of #aihf which is available to such     

individual at that time4  7c7 ,expedited
 amended return process ,for any        
individual who has-- 7#a7 taken parental
 leave during a taxable year2  7#b7     
elected to receive a parental leave     
credit carryback 7as described in       
subsection 7a77#c7 of section #cf;,c of 
the ,internal ,revenue ,code of #aihf7  
for such parental leave2 and  7#c7 has  
timely filed an amendment to the income 
tax return for such individual for the  
preceding taxable year for the sole     
purpose of claiming the credit allowed  
under subsection 7a7 of such section1   
the ,secretary shall establish a        
separate and expedited process for      
reviewing and processing such amended   
returns4  7d7 ,conforming amendments    
7#a7 ,the table of sections for subpart 
,c of part ,,iv of subchapter ,a of     
chapter #a of subtitle ,a of the        
,internal ,revenue ,code of #aihf is    
amended by inserting after the item     
relating to section #cf;,b the          
following3 ,sec4 #cf;,c4 ,parental leave

 credit44  7#b7 ,section                
#fbaa7;b77#d77;,a7 of such ,code is     
amended by striking and #cf;,b1         
#afh7k77#d7 and inserting #cf;,b1 and   
#cf;,c4  7#c7 ,section #fbac7;g77#b7 of 
such ,code is amended--  7,a7 in        
subparagraph 7,p71 by striking and at   
the end2  7,b7 in subparagraph 7,q71 by 
striking the period at the end and      
inserting 1 and2 and  7,c7 by inserting 
after subparagraph 7,q7 the following3  
7,r7 an omission of information required
 by subsection 7c7 of section #cf;,c or 
an entry on the return claiming the     
credit under such section for a taxable 
year for which such credit is disallowed
 pursuant to section #cf;,c7c77#d74  4  
7#d7 ,paragraph 7#b7 of section         
#acbd7;b7 of title #ca1 ,united ,states 
,code1 is amended by inserting #cf;,c1  
after #cf;,b14  7e7 ,effective date ,the
 amendments made by this section shall  
apply to taxable years beginning after  
,december #ca1 #bjai4