H.R. 8837

[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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