The Employer Credit for Paid Family and Medical Leave (IRC §45S) has been an underused but powerful incentive for businesses offering paid leave — and it’s about to get a serious upgrade.

🔹 Current Credit (through 2025):
Employers can claim a 12.5%–25% tax credit for wages paid to qualifying employees during family and medical leave.

But here’s what’s on deck for 2026:
✔️ The credit becomes permanent
✔️ Employers can choose to apply it:

• (a) based on wages paid during leave, or
• (b) toward paid family leave insurance premiums

This flexibility could make §45S significantly more accessible, especially for small and midsize businesses trying to offer meaningful benefits in a competitive hiring landscape.

#TaxCredits #FamilyLeave #IRC45S #SmallBusiness #EmployeeBenefits #CPA #PaidLeave #WageCredits #BusinessTaxPlanning #WorkplacePolicy

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.