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131 STAT. 2135 PUBLIC LAW 115–97—DEC. 22, 2017 the Internal Revenue Code (as amended by subsection (b)), or the 60-month period applicable under clause (ii) of such section, begins not later than 180 days after the date of the enactment of this Act, the amendments made by this section shall apply to such expenditures paid or incurred after the end of the taxable year in which the 24-month period, or the 60-month period, referred to in subparagraph (B) ends. SEC. 13403. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE. (a) IN GENERAL.— (1) ALLOWANCE OF CREDIT.—Subpart D of part IV of sub- chapter A of chapter 1 is amended by adding at the end the following new section: ‘‘SEC. 45S. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL LEAVE. ‘‘(a) ESTABLISHMENT OF CREDIT.— ‘‘(1) IN GENERAL.—For purposes of section 38, in the case of an eligible employer, the paid family and medical leave credit is an amount equal to the applicable percentage of the amount of wages paid to qualifying employees during any period in which such employees are on family and medical leave. ‘‘(2) APPLICABLE PERCENTAGE.—For purposes of paragraph (1), the term ‘applicable percentage’ means 12.5 percent increased (but not above 25 percent) by 0.25 percentage points for each percentage point by which the rate of payment (as described under subsection (c)(1)(B)) exceeds 50 percent. ‘‘(b) LIMITATION.— ‘‘(1) IN GENERAL.—The credit allowed under subsection (a) with respect to any employee for any taxable year shall not exceed an amount equal to the product of the normal hourly wage rate of such employee for each hour (or fraction thereof) of actual services performed for the employer and the number of hours (or fraction thereof) for which family and medical leave is taken. ‘‘(2) NON-HOURLY WAGE RATE.—For purposes of paragraph (1), in the case of any employee who is not paid on an hourly wage rate, the wages of such employee shall be prorated to an hourly wage rate under regulations established by the Sec- retary. ‘‘(3) MAXIMUM AMOUNT OF LEAVE SUBJECT TO CREDIT.— The amount of family and medical leave that may be taken into account with respect to any employee under subsection (a) for any taxable year shall not exceed 12 weeks. ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘eligible employer’ means any employer who has in place a written policy that meets the following requirements: ‘‘(A) The policy provides— ‘‘(i) in the case of a qualifying employee who is not a part-time employee (as defined in section 4980E(d)(4)(B)), not less than 2 weeks of annual paid family and medical leave, and ‘‘(ii) in the case of a qualifying employee who is a part-time employee, an amount of annual paid family and medical leave that is not less than an amount which bears the same ratio to the amount of annual 26 USC 45S. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00083 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS