Bill > HR4548

This bill aims to extend two existing tax credits for small employers to tax-exempt organizations, specifically nonprofits, to help them establish and manage retirement plans. The first credit helps cover the startup costs of creating a pension plan, and the second credit provides an incentive for auto-enrolling employees in retirement plans. For tax-exempt employers described under section 501(c) of the tax code, these credits will now be applied against payroll taxes (specifically the tax imposed under section 3111(a)) instead of income taxes. The credit amount will be the lesser of the original credit calculation or the total payroll taxes paid during the calendar year. This means nonprofit organizations that previously couldn't benefit from these retirement plan incentives will now have financial support to help their employees save for retirement. The bill's provisions will take effect for taxable years beginning after December 31, 2024, and includes a mechanism to ensure that any revenue reduction is transferred from the general fund to the Social Security trust funds to maintain their financial integrity.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4548/all-info