A bipartisan pair of House tax writers introduced legislation giving very small businesses (those with ten or fewer employees) a tax credit for establishing a new retirement savings plan for their workers. H.R.6007 was introduced on October 23 by Ways & Means Committee members Reps. Claudia Tenney (R-NY) and Dan Kildee (D-MI).
The Retirement Investment in Small Employers Act (RISE Act) would create a $2,500 tax credit to defray the costs of establishing a workplace retirement saving plan for employers with ten or fewer employees who earn $5,000 or more per year. The legislation would allow the tax credit for establishment of SIMPLE plans as well as other more robust retirement savings plans.
Prospects: It is not impossible, although it is not likely, that this legislation will find its way into this year’s tax package (if one can be agreed to and included in a government funding bill). However, the cost (revenue estimate) of the bill, which has not yet been determined, will play a role in whether lawmakers will seriously consider the proposal. But a bipartisan bill targeting very small businesses is likely to win considerable support among lawmakers from both parties, and so its chances—again depending on the revenue estimate—could be better next year.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.