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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8837 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8837
To amend the Internal Revenue Code of 1986 to provide for a
microemployer pension plan startup credit, to permit the assignment of
small business pension plan startup credits, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 14, 2026
Ms. Tenney (for herself, Mr. Schneider, Mr. Smith of Nebraska, and Ms.
Sanchez) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for a
microemployer pension plan startup credit, to permit the assignment of
small business pension plan startup credits, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Retirement Investment in Small
Employers Act'' or ``RISE Act''.
SEC. 2. MICROEMPLOYER PENSION PLAN STARTUP CREDIT.
(a) In General.--Section 45E of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(g) Credit for Microemployers.--
``(1) In general.--In the case of a qualified
microemployer--
``(A) subsection (a) shall be applied by
substituting `100 percent' for `50 percent', and
``(B) subsection (b)(1) shall be applied by
substituting `$2,500' for `$500' in subparagraph (A)
thereof.
``(2) Qualified microemployer.--For purposes of this
subsection, the term `qualified microemployer' means an
employer which would be an eligible employer if section
408(p)(2)(C)(i)(I) were applied by substituting `10' for `100',
but only if the eligible employer plan established or
maintained by such employer, under the terms of the plan,
accepts payment of the matching contribution under section
6433.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
SEC. 3. ASSIGNMENT OF SMALL BUSINESS PENSION PLAN STARTUP CREDITS.
(a) In General.--Section 45E of the Internal Revenue Code of 1986,
as amended by section 2, is amended by adding at the end the following
new subsection:
``(h) Credit for Eligible Service Providers.--
``(1) In general.--In the case of an eligible entity that
provides services with respect to an eligible employer plan,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount determined under
paragraph (2) for each of the first 3 credit years with respect
to such plan, provided that the requirements of this subsection
are satisfied.
``(2) Amount of credit.--
``(A) In general.--The amount of the credit allowed
under this subsection for any taxable year shall be
equal to the credit that would have been allowable to
the eligible employer under subsection (a) for such
taxable year (determined without regard to subsection
(f)), subject to the limitations of subsection (b).
``(B) Determination of credit years.--For purposes
of this subsection, the term `credit year' means, with
respect to a plan, the taxable year of the eligible
entity which includes the date that the eligible
employer plan becomes effective with respect to the
eligible employer and the two taxable years immediately
following such taxable year.
``(3) Eligible entity.--For purposes of this subsection,
the term `eligible entity' means, with respect to the plan for
which the credit is allowed under subsection (a), an entity
that--
``(A) with respect to the plan, provides services
that generate qualified startup costs;
``(B) reduces the amount of fees that would
otherwise be charged to the eligible employer for such
services by an amount not less than the credit
determined under paragraph (2) for the taxable year;
and
``(C) obtains the certification described in
paragraph (4) prior to claiming the credit.
``(4) Employer certification.--The certification described
in this paragraph is a written certification that--
``(A) is made by the eligible employer not later
than the date on which the services generating the
qualified startup costs for the plan for which the
credit is allowed under subsection (a) are provided;
and
``(B) includes--
``(i) the number of employees of the
eligible employer who are not highly
compensated employees (as defined in section
414(q)) and who are eligible to participate in
the eligible employer plan maintained by the
eligible employer as of the date such plan is
established;
``(ii) that neither the employer nor any
predecessor established or maintained a
qualified employer plan with respect to which
contributions were made, or benefits were
accrued, for substantially the same employees
as are in the qualified employer plan during
the 3-taxable year period immediately preceding
the 1st taxable year for which the credit under
this section is otherwise allowable for the
qualified employer plan;
``(iii) that the employer will not claim a
tax credit for qualified start up costs with
respect to the plan for any taxable year;
``(iv) that the employer has not provided a
certification to any other service provider for
purposes of claiming tax credits with respect
to the plan; and
``(v) such other information as the
Secretary may require in published regulations.
``(5) Coordination with credit to employer.--No credit
shall be allowed under subsection (a) to an eligible employer
with respect to a plan for which a credit is allowed under this
subsection to an eligible entity with respect to such plan.
``(6) Tax treatment of payments.--With respect to the
reduction in fees described in paragraph (3)(B), such payment--
``(A) shall not be includible in the gross income
of the employer, and
``(B) with respect to the eligible entity, shall
not be deductible under this title.
``(7) Certain other requirements.--The tax credit allowed
to an eligible entity under paragraph (1) will not be reduced
in taxable years following the first credit year due to a
change in the number of employees of the eligible employer
described in subparagraph (b)(1)(B)(i).
``(8) Recapture.--If the amount received by an eligible
entity with respect to a qualified plan is greater than the
credit under subsection (a) that would otherwise (but for this
subsection) be allowable to such employer with respect to such
qualified plan, for example because the employer is not an
eligible employer or incorrectly certifies the number of
employees under (4)(B)(i), the tax imposed on such eligible
entity under this chapter for the taxable year in which the
credit is received with respect to such qualified plan shall be
increased by the amount by which the credit received exceeds
the amount that would otherwise (but for this subsection) be
allowable to such employer.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
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