,i #aagth ,,congress #ast ,session ,h4 ,r4 #ebca ,,in ,,the ,,house ,,of ,,representatives ,september #aj1 #bjba,mr4 ,kelly of ,pennsylvania introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to modify the employer credit for paid family and medical leave1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,relief for ,working ,families ,act4 #b4 ,modifications to employer credit for paid family and medical leave 7a7 ,credit made permanent and limited to first #e years after establishment of plan 7#a7 ,in general ,section #de,s7i7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,phase-out ,section #de,s of such ,code is amended by adding at the end the following new subsection3 7i7 ,credit limited to first #e years after establishment of plan 7#a7 ,in general ,no credit shall be allowed under this section with respect to any taxpayer after the #e-taxable-year period beginning with the taxable year which includes the date on which the taxpayer first has in place a policy described in subsection 7c77#a74 7#b7 ,phase-down of credit ,the credit determined under this section 7without regard to this subsection7 shall be reduced by-- 7,a7 in the case of the fourth taxable year in the #e-taxable-year period described in paragraph 7#a71 #be percent of the amount of such credit1 and 7,b7 in the case of the fifth taxable year in such #e-taxable-year period1 #ej percent of the amount of such credit4 7#c7 ,transitional rule ,the #e-taxable-year period described in paragraph 7#a7 shall not be treated as beginning before the beginning of the taxpayer's first taxable year beginning after ,december #ca1 #bjbb4 4 7b7 ,enhanced credit for new plans of small employers 7#a7 ,in general ,section #de,s of such ,code is amended by adding at the end the following new subsection3 7j7 ,enhanced credit for certain new plans of small employers 7#a7 ,in general ,in the case of an eligible small employer-- 7,a7 subsection 7a77#b7 shall be applied-- 7i7 by substituting #be percent for #ab4e percent1 and 7ii7 by substituting #ej percent for #be percent 7determined without regard to the substitution described in clause 7i771 7,b7 the credit determined under subsection 7a77#a7 for any taxable year shall be increased by the applicable percentage 7determined after application of subparagraph 7,a77 of the sum of-- 7i7 so much of the amounts paid during such taxable year as administrative expenses of carrying out the policy described in subsection 7c77#a7 7other than any amounts paid to establish such policy71 including payments to third-party administrators and premiums for short-term disability insurance1 as do not exceed #ej1jjj1 plus 7ii7 in the case of the taxable year which includes the date on which the policy described in subsection 7c77#a7 takes effect1 so much of the amounts paid to establish such policy as do not exceed #a1jjj4 7#b7 ,eligible small employer ,for purposes of this subsection1 the term eligible small employer means1 with respect to any taxable year1 any eligible employer-- 7,a7 the gross receipts of which for such taxable year do not exceed #be1jjj1jjj1 7,b7 which employed on average #ej or fewer employees on business days during the taxable year1 and 7,c7 which did not have a policy described in subsection 7c77#a7 in place at any time prior to the date of the enactment of this ,act4 4 7#b7 ,effective date ,the amendment made by this subsection shall apply to taxable years beginning after the date of the enactment of this ,act4 7c7 ,employer requirements for rate of payment 7#a7 ,in general ,subsection 7c7 of section #de,s of such ,code is amended-- 7,a7 in paragraph 7#a77;,b71 by inserting after the first sentence the following3 ,for purposes of determining the rate of payment under the program1 any family and medical leave which is paid by a ,state or local government or required by ,state or local law1 determined as a percentage of the wages normally paid to such employee for services performed for the employer1 shall be taken into account42 and 7,b7 in paragraph 7#d7-- 7i7 by striking ,for purposes of this section1 any and inserting ,any2 and 7ii7 by striking amount of paid family and medical leave provided by the employer and inserting wages taken into account under subsection 7a74 7#b7 ,effective date ,the amendments made by this subsection shall take effect as if included in section #acdjc of ,public ,law #aae-ig4 7d7 ,technical corrections 7#a7 ,in general ,section #de,s of such ,code is amended-- 7,a7 in subsection 7b77#a71 by striking credit allowed and inserting wages taken into account2 7,b7 in subsection 7c71 by striking paragraph 7#c7 and inserting the following3 7#c7 ,aggregation rule 7,a7 ,in general ,except as provided in subparagraph 7,b71 all persons which are treated as a single employer under subsections 7b7 and 7c7 of section #dad shall be treated as a single employer4 7,b7 ,exception 7i7 ,in general ,subparagraph 7,a7 shall not apply to any person who establishes to the satisfaction of the ,secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph 7#a7 or 7#b74 7ii7 ,substantial and legitimate business reason ,for purposes of clause 7i71 the term substantial and legitimate business reason shall not include the operation of a separate line of business1 the rate of wages or category of jobs for employees 7or any similar basis71 or the application of ,state or local laws relating to family and medical leave1 but may include the grouping of employees of a common law employer4 2 and 7,c7 in subsection 7d77#b71 by inserting 1 as determined on an annualized basis 7pro-rata for part-time employees71 after compensation4 7#b7 ,effective date ,the amendments made by this subsection shall take effect as if included in section #acdjc of ,public ,law #aae-ig4