Bill > S2365

This bill amends the Internal Revenue Code to extend two key retirement-related tax credits to tax-exempt nonprofit organizations (defined as employers described in section 501(c) and exempt from taxation under section 501(a). Specifically, the bill allows tax-exempt employers to receive credits for small employer pension plan startup costs and retirement auto-enrollment that they previously could not access. These credits will now be treated as payroll tax credits, with the credit amount limited to the lesser of the original credit calculation or the amount of payroll taxes paid by the employer during the calendar year. The bill ensures that these new credits will not reduce overall funding for Social Security trust funds by appropriating equivalent amounts from the general fund to replace any potential revenue loss. These changes will take effect for taxable years beginning after December 31, 2024, effectively providing nonprofit organizations with new financial incentives to establish and improve retirement plans for their employees. By making these credits available to nonprofits, the bill aims to help smaller, tax-exempt organizations more easily establish and maintain retirement benefits for their workers.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2365/all-info