(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). (ii) Substantial and legitimate business reason For purposes of clause (i), the term substantial and legitimate business reason shall not include the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer. (4) Treatment of benefits mandated or paid for by State or local governments For purposes of this section, any leave which is paid by a State or local government or required by State or local law— (A) except as provided in subparagraph (B), shall be taken into account in determining the amount of paid family and medical leave provided by the employer, and (B) shall not be taken into account in determining the amount of the paid family and medical leave credit under subsection (a). , (4) in subsection (d)— (A) in paragraph (1), by inserting (or, at the election of the employer, for not less than 6 months) after 1 year or more , and (B) in paragraph (2)— (i) by inserting , as determined on an annualized basis (pro-rata for part-time employees), after compensation , and (ii) by striking the period at the end and inserting , and , and (C) by adding at the end the following: (3) is customarily employed for not less than 20 hours per week. , and (5) by striking subsection (i). (b) No double benefit Section 280C(a) of the Internal Revenue Code of 1986 is amended— (1) by striking 45S(a) and inserting 45S(a)(1)(A) , and (2) by inserting after the first sentence the following: No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is