Small Employer Retirement Savings Auto-Enrollment Credit Act

Small Employer Retirement Savings Auto-Enrollment Credit Act

This bill amends the Internal Revenue Code to allow a three-year $500 business-related tax credit for eligible small employers who include and maintain an automatic contribution arrangement in an employer-sponsored retirement plan.

An "eligible employer" is an employer with no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding year.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3902 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3902

To amend the Internal Revenue Code of 1986 to provide a credit to small 
  employers providing an eligible automatic contribution arrangement 
                    under a retirement savings plan.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2017

   Mr. Bishop of Michigan (for himself and Mr. Neal) 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 a credit to small 
  employers providing an eligible automatic contribution arrangement 
                    under a retirement savings plan.

    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 ``Small Employer Retirement Savings 
Auto-Enrollment Credit Act''.

SEC. 2. SMALL EMPLOYER RETIREMENT SAVINGS AUTOMATIC ENROLLMENT CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. AUTO-ENROLLMENT CREDIT FOR RETIREMENT SAVINGS OPTIONS 
              PROVIDED BY SMALL EMPLOYERS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the retirement auto-enrollment credit determined 
under this section for any taxable year is an amount equal to--
            ``(1) $500 for any taxable year occurring during the credit 
        period, and
            ``(2) zero for any other taxable year.
    ``(b) Credit Period.--For purposes of subsection (a)--
            ``(1) In general.--The credit period with respect to any 
        eligible employer is the 3-taxable-year period beginning with 
        the first taxable year for which the employer includes an 
        eligible automatic contribution arrangement (as defined in 
        section 414(w)(3)) in a qualified employer plan (as defined in 
        section 4972(d)) sponsored by the employer.
            ``(2) Maintenance of arrangement.--No taxable year with 
        respect to an employer shall be treated as occurring within the 
        credit period unless the arrangement described in paragraph (1) 
        is included in the plan for such year.
    ``(c) Eligible Employer.--For purposes of this section, the term 
`eligible employer' has the meaning given such term in section 
408(p)(2)(C)(i).''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 is amended by 
striking ``plus'' at the end of paragraph (35), by striking the period 
at the end of paragraph (36) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(37) in the case of an eligible employer (as defined in 
        section 45S(c)), the retirement auto-enrollment credit 
        determined under section 45S(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45R the 
following new item:

``Sec. 45S. Auto-enrollment credit for retirement savings options 
                            provided by small employers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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