AR SB653

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

Credits employers 25% of wages paid to qualified employees on family and medical leave, with a maximum credit of $4,000 per employee per tax year.

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

Limits the maximum creditable leave to 12 weeks per qualified employee in a 12-month period, with leave able to run concurrently with state or federal leave requirements including the Family and Medical Leave Act of 1993.

Effective for tax years beginning on or after January 1, 2019, requiring employers to adopt a policy protecting employees from interference or discrimination for exercising family and medical leave rights.