A key federal tax credit that helps employers provide paid family and medical leave is one step closer to being extended, following a win by the Christian Employers Alliance (CEA) in the Senate Finance Committee.
On Friday, CEA announced that committee members approved language to extend IRS Section 45S, the Employer Credit for Paid Family and Medical Leave, as part of the Senate version of the so-called “Big, Beautiful Bill.” The credit, which is set to expire December 31, allows businesses to offset the cost of continuing employee wages during family or medical leave.
“The inclusion of the PFML Tax Credit is a step toward ensuring that employers across the country can continue being first in line to provide for families in times of need,” said CEA President Margaret Iuculano. “American businesses and families make up the backbone of our society, and they deserve our steadfast support.”
The House has already approved the extension. Without congressional action, many employers could be forced to reduce or eliminate leave benefits to avoid financial strain, CEA warned.
In a recent op-ed, Iuculano explained that the tax credit functions as a shared burden model: “Businesses continue to pay wages… and the federal government steps in to reduce employers’ tax liability to offset some of the costs.”
She credited Senator Deb Fischer (R-Neb.) for championing the proposal in the Senate.
“This victory demonstrates the incredible influence Christian business leaders can have when we unite around biblical principles,” Iuculano said.
CEA said it will continue advocacy efforts to ensure the tax credit remains in the final version of the legislation.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.
