Paid Leave Tax Credit Gains Momentum as Federal Mandate Stalls

Support for a little-known tax credit is gaining steam on Capitol Hill as a tool to expand paid leave access to more Americans while lawmakers remain divided over launching a permanent federal program.

Most employers can get as much as a 25% tax credit for providing their employees with paid leave, but that incentive is set to expire in 2025. Sens. Angus King (I-Maine) and Deb Fischer (R-Neb.) introduced a bill (S. 3680) this month that would make the credit permanent and more accessible to employers, particularly small businesses that want more certainty when setting up a costly ...