Bill would extend paid leave tax credits to public employers

A bipartisan bill proposed by five members of U.S. Congress on Tuesday is designed to allow entities such as hospitals, city and county agencies and schools to provide emergency paid leave for their employees.

Rep. T.J. Cox, who represents a portion of Southern Tulare County, Rep. Brad Schneider-d-illinois; Rep. John Katko-r-ny, Rep. Peter KING-R-NY and Rep. Diana Degetted-colo., have proposed the bill.

The bill would make state and local governments eligible for emergency paid leave payroll tax credits. This would give public entities such as hospitals, city and county agencies and schools the same tax credits as private companies. The bill is designed to help state and local budgets that are being impacted by the COVID-19 pandemic.

The Families First Coronavirus Response Act passed by Congress

last month expanded significantly Americans’ access to paid leave by requiring public and many private employers to extend paid leave to their employees. The law included payroll tax credits for private employers to offset costs of paid leave, but not public employers.

The Supporting State and Local Leaders Act proposed on Tuesday would would also give tax credits to public employers to help state and local governments offset costs of paid leave. The legislation has 108 bipartisan cosponsors.

“State and local governments are on the front lines of this pandemic,” Cox said. “I am proud to support this bipartisan legislation extending the emergency paid leave payroll tax credits — which are already available to the private sector — to public employers. This important fix to the Families Firset Coronavirus Response Act puts public employers on par with the private sector and will free up more resources for state and local governments to provide the critical services necessary for successful COVID-19 response.”

The legislation is endorsed by the following organizations: American Council on Education, American Federation of Teachers, American Library Association, American Public Transportation Association, American Society of Civil Engineers, Association of Public and Land-grant Universities, Government Finance Officers Association, International City/county Management Association, National Association of Clean Water Agencies, National Association of College and University Business Officers, National Association of Counties, National Conference of State Legislatures, National League of Cities, National School Boards Association, State Higher Education Executive Officers Association and United States Conference of Mayors.