[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4965 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4965

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

                             August 1, 2024

    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 2024''.

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.
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