Schedule PL (RV-F700009): Paid Family and Medical Leave Credit (Revision 2025-09)
Tennessee · Tennessee DOR · Used for tax years 2024, 2025, 2026
Schedule PL calculates the Paid Family and Medical Leave Credit available to offset Tennessee franchise and excise tax in the current year. The accompanying Schedule PLCF tracks credit carryovers, including amounts previously used or expired.
Who files this form
Schedule PL is used to calculate the Paid Family and Medical Leave Credit carryover available to offset Tennessee franchise and excise tax.
Eligible taxpayers could establish a credit equal to the federal employer credit allowed under Internal Revenue Code Section 45S for compensation paid in Tennessee during tax years ending on or after December 31, 2023, but before December 31, 2025.
The credit has expired for leave paid during tax periods ending on or after December 31, 2025. However, unused credits established during the eligible period may be carried forward for up to 25 years.
When it's due
The form gives credit eligibility cutoff dates, not a filing due date:
- Eligible tax years: Tax years ending on or after December 31, 2023, but before December 31, 2025.
- Expiration for new credits: For tax years ending on or after December 31, 2025, no credit may be claimed for family and medical leave paid during those tax periods.
Unused credits established during the eligible period may still be carried forward for up to 25 years.
What you'll need
To complete the schedules, have these amounts and details available:
- Your taxable year, taxpayer name, and account number or FEIN.
- Schedule PLCF: Credit amounts by originating tax period, including corrected amounts, amounts previously used, and expired amounts.
- Schedule A, line 3, and Schedule B, line 5: Franchise and excise tax liability before credits.
- Schedule D: Credits before the Paid Family and Medical Leave Credit, from FAE174 lines 1–7 or FAE170 lines 1–8.
If reporting a previously unreported credit adjustment by correspondence, include supporting documentation.
Common mistakes
- Claiming a new credit after expiration: The credit cannot be claimed for leave paid during tax periods ending on or after December 31, 2025. Eligible unused carryovers may still be used.
- Only changing Schedule PLCF to report an adjustment: Changing the credit amount on this schedule does not update the Department’s records for a previously unreported adjustment. Use the applicable Departmental form or correspondence with supporting documentation.
- Using newer credits first: List the oldest tax period first and use the oldest credit within the 25-year carryover period first.
- Including used or expired credits in available carryover: Subtract amounts already used or expired when calculating each year’s available carryover.
Questions people ask
How long can unused credits be carried forward?
Up to 25 years or until fully used, whichever comes first. The credits may offset franchise and excise tax.
How much carryover can I use in the current year?
Schedule PL, line 7, is the smallest of line 1, available carryover; line 3, 50% of tax liability before credits; or line 6, tax remaining after the other Schedule D credits.
Where do I enter the calculated credit?
Enter the total from Schedule PLCF on Schedule PL, line 1. Enter the amount calculated on Schedule PL, line 7, on Schedule D, line 9, as well.
What if a credit amount was amended or adjusted by the Department?
Enter the corrected amount in Schedule PLCF’s “Original Return or as Amended” column. If the adjustment has not previously been reported to the Department, report it using the applicable Departmental form or correspondence with supporting documentation. Changing Schedule PLCF alone will not adjust the Department’s records.