AICPA seeks clarity on revamped paid family leave credit rules

The AICPA is requesting guidance on changes made to the paid family and medical leave credit in Sec. 45S under H.R. 1, commonly known as the One Big Beautiful Bill Act.

Under OBBBA, Sec. 45S makes the credit available to a broader group of employers. However, employers must ensure that their written leave policies are compliant during the first full year that the amended Sec. 45S changes are in effect (2026).

Sec. 45S(c) defines “eligible employer” as an employer with a written policy that meets the requirements to claim the credit. In general, the written policy must provide a certain level and duration of coverage for all “qualifying employees.”

The enhanced credit allows “more employers to offer paid family and medical leave as a benefit to their employees,” Kristin Esposito, director–Tax Policy & Advocacy at the AICPA, said in a news release. “The purpose of our letter is to help practitioners obtain clarity on how to implement the changes to the credit.”