No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2365 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2365
To amend the Internal Revenue Code of 1986 to make the credit for small
employer pension plan startup costs and the retirement auto-enrollment
credit available to tax-exempt eligible small employers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 21, 2025
Mr. Lankford (for himself and Ms. Cortez Masto) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to make the credit for small
employer pension plan startup costs and the retirement auto-enrollment
credit available to tax-exempt eligible small employers.
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 Nonprofit Retirement Security
Act of 2025''.
SEC. 2. RETIREMENT CREDITS MADE AVAILABLE TO TAX-EXEMPT SMALL
EMPLOYERS.
(a) Credit for Small Employer Pension Plan Startup Costs.--Section
45E of the Internal Revenue Code of 1986 is amended by adding at the
end the following new subsection:
``(g) Credit Made Available to Tax-Exempt Eligible Employers.--
``(1) In general.--In the case of a tax-exempt eligible
employer, there shall be treated as a credit allowed under
section 3111(g), and not as a credit determined under
subsection (a), an amount equal to the lesser of--
``(A) the amount of the credit determined under
this section (without regard to this subsection) with
respect to such employer, or
``(B) the amount of payroll tax paid by the
employer during the calendar year in which the taxable
year begins.
``(2) Definitions.--For purposes of this subsection--
``(A) Tax-exempt eligible employer.--The term `tax-
exempt eligible employer' means an eligible employer
which is described in section 501(c) and exempt from
taxation under section 501(a).
``(B) Payroll tax.--
``(i) In general.--The term `payroll tax'
means the tax imposed by section 3111(a).
``(ii) Special rule.--A rule similar to the
rule of section 24(d)(2)(C) shall apply for
purposes of determining the payroll tax paid by
an employer.''.
(b) Retirement Auto-Enrollment Credit.--Section 45T of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
``(d) Credit Made Available to Tax-Exempt Eligible Employers.--
``(1) In general.--In the case of a tax-exempt eligible
employer, there shall be treated as a credit allowed under
section 3111(g), and not as a credit determined under
subsection (a), an amount equal to the lesser of --
``(A) the amount of the credit determined under
this section (without regard to this subsection) with
respect to such employer, or
``(B) the amount of payroll tax paid by the
employer during the calendar year in which the taxable
year begins.
``(2) Definitions.--For purposes of this subsection--
``(A) Tax-exempt eligible employer.--The term `tax-
exempt eligible employer' means an eligible employer
which is described in section 501(c) and exempt from
taxation under section 501(a).
``(B) Payroll tax.--
``(i) In general.--The term `payroll tax'
means the tax imposed by section 3111(a).
``(ii) Special rule.--A rule similar to the
rule of section 24(d)(2)(C) shall apply for
purposes of determining the payroll tax paid by
an employer.''.
(c) Payroll Credit.--Section 3111 of the Internal Revenue Code of
1986 is amended by adding at the end the following new subsection:
``(g) Credit for Certain Plans of Tax-Exempt Employers.--
``(1) In general.--In the case of a tax-exempt eligible
employer to which section 45E(g) or section 45T(d) applies,
there shall be allowed as a credit against the tax imposed by
subsection (a) for calendar quarters in an applicable year an
amount equal to the amount determined under section 45E(g)(1)
or section 45T(d)(1), whichever is applicable.
``(2) Limitation.--The aggregate amount allowed as a credit
under this subsection for the calendar quarters in any year
shall not exceed the amount of the tax imposed by subsection
(a) on wages paid with respect to the employment of all
employees of the employer during such year, determined by
applying a rule similar to the rule of section 24(d)(2)(C).
``(3) Definitions.--For purposes of this subsection--
``(A) Tax-exempt eligible employer.--The term `tax-
exempt eligible employer' means an eligible employer
which is described in section 501(c) and exempt from
taxation under section 501(a).
``(B) Applicable year.--The term `applicable year'
means the calendar year referred to in section
45E(g)(1)(B) or section 45T(d)(1)(B), whichever is
applicable.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(e) Transfers of Funds to Old-Age, Survivors, and Disability Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of the amendments made by subsections (a), (b), and (c). Amounts
appropriated by the preceding sentence shall be transferred from the
general fund at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to such Trust
Fund had such amendments not been enacted.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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