,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #ebca  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #aj1        
#bjba,mr4 ,kelly ( ,p5nsylvania         
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to modify ! employ] cr$it 
= paid family & m$ical leave1 & = o!r   
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,relief = ,work+ ,families 
,act4  #b4 ,modifications to employ]    
cr$it = paid family & m$ical leave  7a7 
,cr$it made p]man5t & limit$ to fir/ #e 
ye>s aft] e/abli%m5t ( plan  7#a7 ,9    
g5]al ,section #de,s7i7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#b7 ,phase-out ,section #de,s
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new subsection3  7i7 ,cr$it     
limit$ to fir/ #e ye>s aft] e/abli%m5t (
 plan  7#a7 ,9 g5]al ,no cr$it %all be  
all[$ "u ?is section ) respect to any   
taxpay] aft] ! #e-taxable-ye> p]iod     
beg9n+ ) ! taxable ye> :i* includes !   

date on :i* ! taxpay] fir/ has 9 place a
 policy describ$ 9 subsection 7c77#a74  
7#b7 ,phase-d[n ( cr$it ,! cr$it det]m9$
 "u ?is section 7)\t reg>d to ?is       
subsection7 %all be r$uc$ by-- 7,a7 9 ! 
case ( ! f\r? taxable ye> 9 !           
#e-taxable-ye> p]iod describ$ 9 p>agraph
 7#a71 #be p]c5t ( ! am\nt ( su* cr$it1 
&  7,b7 9 ! case ( ! fif? taxable ye> 9 
su* #e-taxable-ye> p]iod1 #ej p]c5t ( ! 
am\nt ( su* cr$it4  7#c7 ,transitional  
rule ,! #e-taxable-ye> p]iod describ$ 9 
p>agraph 7#a7 %all n be treat$ z beg9n+ 
be=e ! beg9n+ ( ! taxpay]'s fir/ taxable
 ye> beg9n+ aft] ,decemb] #ca1 #bjbb4  4
  7b7 ,enhanc$ cr$it = new plans ( small
 employ]s  7#a7 ,9 g5]al ,section #de,s 
( su* ,code is am5d$ by add+ at ! end ! 
foll[+ new subsection3  7j7 ,enhanc$    
cr$it = c]ta9 new plans ( small employ]s
  7#a7 ,9 g5]al ,9 ! case ( an eligible 
small employ]-- 7,a7 subsection 7a77#b7 
%all be appli$-- 7i7 by sub/itut+ #be   
p]c5t = #ab4e p]c5t1 &  7ii7 by         
sub/itut+ #ej p]c5t = #be p]c5t 7det]m9$

 )\t reg>d to ! sub/itution describ$ 9  
clause 7i771  7,b7 ! cr$it det]m9$ "u   
subsection 7a77#a7 = any taxable ye>    
%all be increas$ by ! applicable        
p]c5tage 7det]m9$ aft] application (    
subp>agraph 7,a77 ( ! sum (-- 7i7 s mu* 
( ! am\nts paid dur+ su* taxable ye> z  
adm9i/rative exp5ses ( c>ry+ out !      
policy describ$ 9 subsection 7c77#a7    
7o!r ?an any am\nts paid to e/abli% su* 
policy71 includ+ paym5ts to ?ird-p>ty   
adm9i/rators & premiums = %ort-t]m      
disability insurance1 z d n exce$       
#ej1jjj1 plus  7ii7 9 ! case ( ! taxable
 ye> :i* includes ! date on :i* ! policy
 describ$ 9 subsection 7c77#a7 takes    
effect1 s mu* ( ! am\nts paid to e/abli%
 su* policy z d n exce$ #a1jjj4  7#b7   
,eligible small employ] ,= purposes (   
?is subsection1 ! t]m eligible small    
employ] means1 ) respect to any taxable 
ye>1 any eligible employ]-- 7,a7 ! gross
 receipts ( :i* = su* taxable ye> d n   
exce$ #be1jjj1jjj1  7,b7 :i* employ$ on 
av]age #ej or few] employees on bus9ess 

days dur+ ! taxable ye>1 &  7,c7 :i* did
 n h a policy describ$ 9 subsection     
7c77#a7 9 place at any "t prior to !    
date ( ! enactm5t ( ?is ,act4  4  7#b7  
,effective date ,! am5dm5t made by ?is  
subsection %all apply to taxable ye>s   
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  7c7 ,employ] requirem5ts = rate (
 paym5t  7#a7 ,9 g5]al ,subsection 7c7 (
 section #de,s ( su* ,code is am5d$--   
7,a7 9 p>agraph 7#a77;,b71 by ins]t+    
aft] ! fir/ s5t5ce ! foll[+3 ,= purposes
 ( det]m9+ ! rate ( paym5t "u ! program1
 any family & m$ical leave :i* is paid  
by a ,/ate or local gov]nm5t or requir$ 
by ,/ate or local law1 det]m9$ z a      
p]c5tage ( ! wages normally paid to su* 
employee = s]vices p]=m$ = ! employ]1   
%all be tak5 into acc\nt42 &  7,b7 9    
p>agraph 7#d7-- 7i7 by /rik+ ,= purposes
 ( ?is section1 any & ins]t+ ,any2 &    
7ii7 by /rik+ am\nt ( paid family &     
m$ical leave provid$ by ! employ] &     
ins]t+ wages tak5 into acc\nt "u        
subsection 7a74  7#b7 ,effective date ,!

 am5dm5ts made by ?is subsection %all   
take effect z if includ$ 9 section      
#acdjc ( ,public ,law #aae-ig4  7d7     
,te*nical corrections  7#a7 ,9 g5]al    
,section #de,s ( su* ,code is am5d$--   
7,a7 9 subsection 7b77#a71 by /rik+     
cr$it all[$ & ins]t+ wages tak5 into    
acc\nt2  7,b7 9 subsection 7c71 by /rik+
 p>agraph 7#c7 & ins]t+ ! foll[+3  7#c7 
,aggregation rule  7,a7 ,9 g5]al ,except
 z provid$ 9 subp>agraph 7,b71 all      
p]sons :i* are treat$ z a s+le employ]  
"u subsections 7b7 & 7c7 ( section #dad 
%all be treat$ z a s+le employ]4  7,b7  
,exception  7i7 ,9 g5]al ,subp>agraph   
7,a7 %all n apply to any p]son :o       
e/abli%es to ! satisfaction ( !         
,secret>y t su* p]son has a sub/antial &
 legitimate bus9ess reason = fail+ to   
provide a writt5 policy describ$ 9      
p>agraph 7#a7 or 7#b74  7ii7 ,sub/antial
 & legitimate bus9ess reason ,= purposes
 ( clause 7i71 ! t]m sub/antial &       
legitimate bus9ess reason %all n include
 ! op]ation ( a sep>ate l9e ( bus9ess1 !

 rate ( wages or category ( jobs =      
employees 7or any simil> basis71 or !   
application ( ,/ate or local laws relat+
 to family & m$ical leave1 b may include
 ! gr\p+ ( employees ( a common law     
employ]4  2 &  7,c7 9 subsection        
7d77#b71 by ins]t+ 1 z det]m9$ on an    
annualiz$ basis 7pro-rata = "p-"t       
employees71 aft] comp5sation4  7#b7     
,effective date ,! am5dm5ts made by ?is 
subsection %all take effect z if includ$
 9 section #acdjc ( ,public ,law        
#aae-ig4