S 2437 — Support Working Families Act

Summary

Support Working Families Act This bill allows a refundable tax credit for a parent who takes leave from employment after the birth or adoption of a child. To be eligible for the credit, the parent must have been employed and worked for a specified period and number of hours in that period.

Bill Text

• Introduced Introduced in Senate Current html August 01, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes a new tax credit for parents taking leave after the birth or adoption of a child, creating eligibility requirements and credit calculations.

• Section 36C

  SEC. 36C. PARENTAL LEAVE CREDIT. (a) Allowance of Credit.-- (1) 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-- (A) the current year parental leave credit, plus (B) the parental leave credit carryback carried to such taxable year.

  Adds a new tax credit for parental leave, allowing a refundable credit against income tax.

• Section 36C(a)(2)

  (2) Current year parental leave credit.-- (A) In general.--Subject to subparagraphs (B) and (C), the amount of the current year parental leave credit for the taxable year shall be equal to the product of-- (i) the total number of weeks of parental leave taken during the benefit period by an individual described in subsection (c)(1)(A) which are completed within such taxable year, multiplied by (ii) an amount equal to the replacement percentage (as determined for each week of parental leave pursuant to subsection (b)(1)) of the average weekly wage rate for such individual.

  Defines the calculation of the current year parental leave credit based on weeks of leave and average wage.

• Section 36C(a)(2)(B)

  (B) Limitation.--The current year parental leave credit for any taxable year shall not exceed the lesser of-- (i) an amount equal to-- (I) the amount determined under subparagraph (A) (determined as if the replacement percentage were 100 percent), minus (II) 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 (i) of such subparagraph-- (aa) pursuant to any law or plan of a State or a political subdivision thereof, or (bb) by the employer of such individual, or (ii) $6,000.

  Imposes a maximum limit on the parental leave credit to prevent excessive claims.

• Section 36C(a)(2)(C)

  (C) Reduction in benefit amount on account of receipt of certain benefits.--The current year parental leave credit for any taxable year (after application of subparagraph (B)) shall be reduced by the amount, if any, in certain benefits as may be otherwise received by an individual for any weeks included under subparagraph (A)(i).

  Reduces the parental leave credit for individuals who receive other specific benefits.

• Section 36C(b)(1)

  (1) Replacement percentage.--The replacement percentage shall be the amount, expressed as a percentage, which has been elected by the individual (in such manner and at such time as is prescribed by the Secretary) for each week of parental leave described in paragraph (2)(A)(i) of subsection (a) for purposes of determining the credit allowed under such subsection, provided that-- (A) such amount is not less than 40 percent and not greater than 90 percent, and...

  Establishes a flexible replacement percentage for calculating the credit, set between 40% and 90%.

• Section 36C(c)(1)

  (1) Employment.-- (A) In general.--An individual is described in this subparagraph if, on the date of the birth or adoption of the child, such individual-- (i) is a parent of the child, (ii) is employed and, during the 64-week period preceding such date, has been employed for not less than 52 weeks, and (iii) has worked not less than a total of 1,000 hours during the 52-week period described in clause (ii).

  Sets eligibility requirements for the credit based on employment history and hours worked.

• Section 36C(c)(2)

  (2) Additional information.-- (A) In general.--No credit shall be allowed under subsection (a) for any taxable year unless the individual includes the following information on the return of tax for such taxable year...

  Requires specified information to be reported for claiming the parental leave credit.

• Section 36C(c)(3)

  (3) Ineligibility; disqualification.-- (A) Ineligibility for benefit.--No credit shall be allowed under subsection (a) for any taxable year unless specified conditions are met.

  Introduces provisions for disqualification from the credit under certain conditions.

Action History

1. August 01, 2019

   Introduced in Senate

2. August 01, 2019

   Read twice and referred to the Committee on Finance.

Sponsors

• Todd Young · Primary

Subjects