AR HB1850

Creates the "Strong Families Act" establishing an income tax credit for employers providing paid family and medical leave to qualified employees.

Allows employers a 25% income tax credit on wages paid during family and medical leave, capped at $4,000 per qualified employee per tax year.

Requires employers to provide at least 4 weeks of paid family and medical leave over 12 months for full-time employees and proportional leave for part-time employees to qualify for the credit.

Defines eligible leave as time off for serious health conditions, childbirth, adoption, or care of a family member with a serious health condition, excluding earned sick leave and annual leave.

Effective for tax years beginning January 1, 2017, with a maximum claimable credit of 12 weeks per qualified employee in a 12-month period.