1. Short title This Act may be cited as the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act . 2. Enhancement of paid family and medical leave credit (a) In general Section 45S of the Internal Revenue Code of 1986 is amended— (1) in subsection (a)— (A) by striking paragraph (1) and inserting the following: (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 either of the following (as elected by such employer): (A) The applicable percentage of the amount of wages paid to qualifying employees with respect to any period in which such employees are on family and medical leave. (B) If such employer has an insurance policy with regards to the provision of paid family and medical leave which is in force during the taxable year, the applicable percentage of the total amount of premiums paid or incurred by such employer during such taxable year with respect to such insurance policy. , and (B) by adding at the end the following: (3) Rate of payment determined without regard to whether leave is taken For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year. , (2) in subsection (b)(1), by striking credit allowed and inserting wages taken into account , (3) in subsection (c), by striking paragraphs (3) and (4) and inserting the following: (3) Aggregation rule (A) In general Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. (B) Exception (i) In general Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2).