UStax_creditpct_of_tax
Paid Family & Medical Leave Credit
US-PFML-CREDIT · United States (Federal)
Summary
Credit for wages paid to employees on Family and Medical Leave Act (FMLA) leave. Credit rate 12.5%–25% depending on wage replacement rate. Requires written paid-leave policy with FMLA-compliant wage replacement. Form 8994.
Benefit
- Percentage
- —
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- —
- Program family
- —
- Effective
- —
- Sunset
- —
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- local_approval_requiredFederal claim-on-return credit. No agency pre-approval gate — the taxpayer claims the credit on their return based on satisfying the statutory eligibility criteria (qualified activity, qualified expenditures, qualified employees, etc.). User attests via the securedApprovals chip group on /match that they have determined the underlying §-criteria are met. Without attestation this rule defaults to "unknown" → status="partial" instead of vacuously "eligible".
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (0)
Statewide / none specified.
Tags (5)
- requires_written_pfml_policy: true
- pfml_wage_replacement_min_pct: 50
- filing_form: Form 8994 (Qualified Paid Leave Credit)
- requires_written_policy: true
- policy_requirement: FMLA-compliant wage replacement (50%+ or 100%+)
Tax bases
- corporate_income_taxprimary
Approval requirements (1)
- requiredUS IRS — self-attestation that qualifying activity meets statutory criteria — Self-attestation: confirm the qualifying activity meets the statutory eligibility criteria for this §-code credit. Tax preparer / CPA verification recommended.
Source
IRC §45S; Form 8994 (Qualified Paid Leave Credit)
Last verified: 2026-04-22