text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Flexible Family Leave Tax Credit Act 
  of 1993''.
  
                        TITLE I--FAMILY LEAVE CREDIT
  
  SEC. 101. CREDIT CREATED.
  
      Subpart D of part IV of subchapter A of chapter 1 of the Internal 
  Revenue Code of 1986 (relating to business related credits) is amended 
  by adding at the end the following new section:
  
  ``SEC. 45A. FAMILY LEAVE CREDIT.
  
      ``(a) Amount of Credit.--
              ``(1) In general.--For purposes of section 38, the amount 
          of the family leave credit for any employer for any taxable 
          year is 20 percent of the qualified compensation with respect 
          to an employee who is on family leave.
              ``(2) Limitations on availability and amount of credit.--
                      ``(A) Fewer than 500 employees.--An employer is not 
                  entitled to a family leave credit for any taxable year 
                  unless--
                              ``(i) in the case of an employer that is in 
                          its first taxable year, the employer had fewer 
                          than 500 employees at the close of that year, 
                          and
                              ``(ii) in the case of other employers, the 
                          employer averaged fewer than 500 employees for 
                          its preceding taxable year.
                  An employer is considered to average fewer than 500 
                  employees for a taxable year if the sum of its 
                  employees on the last day of each quarter in that year 
                  divided by the number of quarters is fewer than 500.
                      ``(B) Dollar cap on qualified compensation.--The 
                  amount of qualified compensation that may be taken into 
                  account with respect to an employee may not exceed $100 
                  per business day.
                      ``(C) Maximum period of family leave.--No family 
                  leave credit will be available to the extent that the 
                  period of family leave for an employee exceeds 12 
                  weeks, defined as 60 business days, in any 12-month 
                  period.
                      ``(D) Additional limitation on leave for personal 
                  serious health conditions.--Leave from an employer in 
                  connection with a qualified purpose described in 
                  subsection (b)(2)(D) will qualify as family leave only 
                  if the employee on leave has no unused sick, disability 
                  or similar leave.
      ``(b) Family Leave.--For purposes of this section--
              ``(1) In general.--Except as otherwise provided in this 
          section, an employee is considered to be on `family leave' if 
          the employee is on leave from the employer in connection with 
          any qualified purpose.
              ``(2) Qualified purposes.--The term `qualified purposes' 
          means--
                      ``(A) the birth of a child,
                      ``(B) the placement of a child with the employee 
                  for adoption or foster care,
                      ``(C) the care of a child, parent or spouse with a 
                  serious health condition, or
                      ``(D) the treatment of a serious health condition 
                  which makes the employee unable to perform the 
                  functions of his or her position.
              ``(3) Definitions of child, parent and serious health 
          condition.--
                      ``(A) Child.--The term `child' means an individual 
                  who is a son, stepson, daughter, stepdaughter, eligible 
                  foster child as described in sections 32(c)(3)(B)(iii) 
                  (I) and (II), or legal ward of the employee or 
                  employee's spouse, or a child of a person standing in 
                  loco parentis and who either has not reached the age of 
                  19 by the commencement of the period of family leave or 
                  is physically or mentally incapable of caring for 
                  himself or herself.
                      ``(B) Parent.--The term `parent' means an 
                  individual with respect to whom the employee would be 
                  considered a `child' within the meaning of subsection 
                  (b)(2)(A) without regard to the age limitation.
                      ``(C) Serious health condition.--The term `serious 
                  health condition' means an illness, injury, impairment, 
                  or physical or mental condition that involves the 
                  inpatient care in a hospital, hospice or residential 
                  health care facility, or substantial and continuing 
                  treatment by a health care provider.
      ``(c) Credit Refundable.--In the case of so much of the section 38 
  credit as is attributable to the family leave credit--
              ``(1) section 38(c) will not apply, and
              ``(2) for purposes of this section, such credit will be 
          treated as if it were allowed under section 103 of the Flexible 
          Family Leave Tax Credit Act of 1993.
      ``(d) Nondiscrimination Requirement.--The family leave credit is 
  available to an employer for a taxable year only if the employer 
  provides family leave to its employees for that year on a 
  nondiscriminatory basis.
      ``(e) Other Definitions and Special Rules.--
              ``(1) In general.--For purposes of this section--
                      ``(A) Employer.--Except as otherwise provided in 
                  this subpart, the term `employer' has the meaning 
                  provided by section 3306(a)(1) and (3).
                      ``(B) Employee.--The term `employee' includes only 
                  permanent employees who have been employed by the 
                  employer for at least 12 months and have provided over 
                  1000 hours of service to the employer during the 12 
                  months preceding commencement of the family leave.
                      ``(C) Qualified compensation.--The term `qualified 
                  compensation' means the greater of--
                              ``(i) cash wages paid or incurred by the 
                          employer to or on behalf of the employee as 
                          remuneration for services during the period of 
                          family leave, and
                              ``(ii) cash wages that would have been paid 
                          or incurred by the employer to or on behalf of 
                          the employee as remuneration for services 
                          during the period of family leave had the 
                          employee not taken the leave.
                      ``(D) Computation.--For purposes of subsection 
                  (e)(1)(C)(ii), the amount of cash wages that would have 
                  been paid to the employee for any business day the 
                  employee is on family leave is the average daily cash 
                  wages of that employee for the four calendar quarters 
                  preceding the commencement of the family leave.
                      ``(E) Average daily cash wages.--For purposes of 
                  the computation described in subsection (e)(1)(D), an 
                  employee's average daily cash wages is his or her total 
                  cash wages for the period described in such subsection 
                  divided by the number of business days in that period.
                      ``(F) Business day.--The term `business day' 
                  includes any day other than a Saturday, Sunday or legal 
                  holiday.
              ``(2) Employment and benefits protection.--
                      ``(A) In general.--Leave taken under this section 
                  shall qualify an employer for a family leave credit 
                  only if--
                              ``(i) upon return from such leave, the 
                          employee is entitled to be restored by the 
                          employer to the position of employment held by 
                          the employee when the leave commenced, or to be 
                          restored to an equivalent position with 
                          equivalent employment benefits, pay, and other 
                          terms and conditions of employment;
                              ``(ii) the taking of such leave does not 
                          result in the loss of any employment benefit 
                          accrued prior to the date on which the leave 
                          commenced; and
                              ``(iii) the employer maintains coverage 
                          under any `group health plan' (as defined in 
                          section 5000(b)(1)) for the duration of such 
                          leave, at the level and under the conditions 
                          coverage would have been provided if the 
                          employee had continued in employment 
                          continuously during the leave period.
                      ``(B) Limitation.--Nothing in this paragraph shall 
                  be construed to require an employer, as a condition of 
                  qualifying for a family leave credit, to entitle any 
                  employee taking leave to--
                              ``(i) the accrual of any seniority or 
                          employment benefits during any period of leave; 
                          or
                              ``(ii) any right, benefit, or position of 
                          employment other than any right, benefit, or 
                          position to which the employee would have been 
                          entitled had the employee not taken the leave.
              ``(3) Expectation that employee will return to work.--No 
          family leave credit will be available for any portion of a 
          period of family leave during which the employer does not 
          reasonably believe that the employee will return from leave to 
          work for the employer.
              ``(4) Special rules.--Rules similar to the rules of section 
          52 shall apply for purposes of this section.
              ``(5) Regulatory authority.--The Secretary may prescribe 
          such regulations or other guidance as may be necessary or 
          appropriate to carry out the purposes of this section, 
          including guidance relating to ensuring adequate employment and 
          benefits protection and guidance to prevent abuse of this 
          section.''.
  
  SEC. 102. COORDINATION WITH REFUND PROVISION.
  
      For purposes of section 1324(b)(2) of title 31 of the United States 
  Code, section 45A of the Internal Revenue Code of 1986 (as added by 
  this Act) will be considered to be a credit provision of the Internal 
  Revenue Code of 1954 enacted before January 1, 1978.
  
  SEC. 103. CONFORMING AMENDMENTS.
  
      (a) Section 38 is amended by deleting the ``plus'' after subsection 
  (b)(7) and ``.'' after subsection (b)(8), by inserting ``, plus'' after 
  subsection (b)(8), and by adding a new subsection (b)(9) to read as 
  follows:
              ``(9) the family leave credit under section 45A.''
      (b) The table of sections for subpart D of part IV of subchapter A 
  of chapter 1 is amended by adding at the end the following new item:
  
  ``Sec. 45A. Family leave credit.''
  
  SEC. 104. EFFECTIVE DATE.
  
      The amendments made by this title shall apply to family leave that 
  commences 90 days after the date of the enactment of this Act.
  
                  TITLE II--DEFICIT NEUTRAL REVENUE OFFSET
  
  SEC. 201. CORPORATE ESTIMATED TAX PROVISIONS.
  
      (a) Increase in Estimated Tax.--
              (1) In general.--Subsection (d) of section 6655 of the 
          Internal Revenue Code of 1986 (relating to amount of required 
          installments) is amended--
                      (A) by striking ``91 percent'' each place it 
                  appears in paragraph (1)(B)(i) and inserting ``100 
                  percent'',
                      (B) by striking ``91 percent'' in the heading of 
                  paragraph (2) and inserting ``100 percent'', and
                      (C) by striking paragraph (3).
              (2) Conforming amendments.--
                      (A) Clause (ii) of section 6655(e)(2)(B) of such 
                  Code is amended by striking the table contained therein 
                  and inserting the following new table:
                      
                                                                      The
                      ``In the case of the following
                                                               applicable
                        required installments:
                                                           percentage is:
                              1st......................               254
                              2nd......................               504
                              3rd......................               754
                              4th......................            100.''
  
                      (B) Clause (i) of section 6655(e)(3)(A) of such 
                  Code is amended by striking ``91 percent'' and 
                  inserting ``100 percent''.
      (b) Modification of Periods for Applying Annualization.--
              (1) Clause (i) of section 6655(e)(2)(A) of such Code is 
          amended--
                      (A) by striking ``or for the first 5 months'' in 
                  subclause (II),
                      (B) by striking ``or for the first 8 months'' in 
                  subclause (III), and
                      (C) by striking ``or for the first 11 months'' in 
                  subclause (IV).
              (2) Paragraph (2) of section 6655(e) of such Code is 
          amended by adding at the end thereof the following new 
          subparagraph:
                      ``(C) Election for different annualization 
                  periods.--
                              ``(i) If the taxpayer makes an election 
                          under this clause--
                                      ``(I) subclause (II) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `4 months' for `3 months',
                                      ``(II) subclause (III) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `7 months' for `6 months', 
                                  and
                                      ``(III) subclause (IV) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `10 months' for `9 
                                  months'.
                              ``(ii) If the taxpayer makes an election 
                          under this clause--
                                      ``(I) subclause (II) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `5 months' for `3 months',
                                      ``(II) subclause (III) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `8 months' for `6 months', 
                                  and
                                      ``(III) subclause (IV) of 
                                  subparagraph (A)(i) shall be applied by 
                                  substituting `11 months' for `9 
                                  months'.
                              ``(iii) An election under clause (i) or 
                          (ii) shall apply to the taxable year for which 
                          made and such an election shall be effective 
                          only if made on or before the date required for 
                          the payment of the second required installment 
                          for such taxable year.''
              (3) The last sentence of section 6655(g)(3) of such Code is 
          amended by striking ``and subsection (e)(2)(A)'' and inserting 
          ``and, except in the case of an election under subsection 
          (e)(2)(C), subsection (e)(2)(A)''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to any installment due date occurring more than 90 days after the 
  date of enactment of this Act.
target: Flexible Family Leave Tax Credit Act of 1993 - 
  Title I:  Family Leave Credit
   - Amends the Internal Revenue Code to allow an employer an income tax credit for 20 percent of qualified employee compensation with respect to an employee who is on family leave.  Limits such credit to employers with 500 or fewer employees, the amount of qualified compensation, and the maximum period for the use of such leave.  Provides that employees qualify for such program if they have no unused sick, disability, or similar leave. 
  Title II:  Deficit Neutral Revenue Offset
   - Increases corporate estimated tax payments for corporations that do not use the previous year's liability safe harbor. 
  Modifies the rules for income annualization for such tax payments.
feat_title: Flexible Family Leave Tax Credit Act of 1993