United States HR 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.

Summary

This bill provides enhanced tax credits to encourage small employers to establish retirement pension plans for their workers. It increases the existing startup credit for "microemployers" with fewer than 10 employees and allows service providers—such as financial advisors and plan administrators—to claim the tax credit on behalf of employers, provided they reduce their fees accordingly. The bill applies to tax years beginning after December 31, 2026.

Bill Text

I 
119THCONGRESS 
2
DSESSION 
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  
MAY14, 2026 
Ms.  T
ENNEY(for  herself,  Mr.  SCHNEIDER,  Mr.  SMITHof  Nebraska,  and  Ms.  
S
A
 ́
NCHEZ)  introduced  the  following  bill;  which  was  referred  to  the  Com-
mittee on Ways and Means 
A  BILL  
To  amend  the  Internal  Revenue  Code  of  1986  to  provide  
for  a  microemployer  pension  plan  startup  credit,  to  per-
mit  the  assignment  of  small  business  pension  plan  start-
up credits, and for other purposes. 
Be  it  enacted  by  the  Senate  and  House  of  Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Retirement Investment 4
in Small Employers Act’’ or ‘‘RISE Act’’. 5
VerDate Sep 11 2014     02:53 May 16, 2026    Jkt 069200    PO 00000    Frm 00001    Fmt 6652    Sfmt 6201    E:\BILLS\H8837.IH    H8837
kjohnson on DSK7ZCZBW3PROD with $$_JOB

2 
•HR  8837  IH
SEC.  2.  MICROEMPLOYER  PENSION  PLAN  STARTUP  CRED-1
IT. 2
(a)  I
NGENERAL.—Section  45E  of  the  Internal  Rev-3
enue  Code  of  1986  is  amended  by  adding  at  the  end  the  4
following new subsection: 5
‘‘(g) C
REDIT FORMICROEMPLOYERS.— 6
‘‘(1)  I
N  GENERAL.—In  the  case  of  a  qualified  7
microemployer— 8
‘‘(A)   subsection   (a)   shall   be   applied   by   9
substituting  ‘100  percent’  for  ‘50  percent’,  and  10
‘‘(B)  subsection  (b)(1)  shall  be  applied  by  11
substituting   ‘$2,500’   for   ‘$500’   in   subpara-12
graph (A) thereof. 13
‘‘(2)   Q
UALIFIED   MICROEMPLOYER.—For   pur-14
poses  of  this  subsection,  the  term  ‘qualified  micro-15
employer’  means  an  employer  which  would  be  an  eli-16
gible  employer  if  section  408(p)(2)(C)(i)(I)  were  ap-17
plied  by  substituting  ‘10’  for  ‘100’,  but  only  if  the  18
eligible  employer  plan  established  or  maintained  by  19
such  employer,  under  the  terms  of  the  plan,  accepts  20
payment  of  the  matching  contribution  under  section  21
6433.’’. 22
(b)  E
FFECTIVEDATE.—The  amendment  made  by  23
this  section  shall  apply  to  taxable  years  beginning  after  24
December 31, 2026. 25
VerDate Sep 11 2014     02:53 May 16, 2026    Jkt 069200    PO 00000    Frm 00002    Fmt 6652    Sfmt 6201    E:\BILLS\H8837.IH    H8837
kjohnson on DSK7ZCZBW3PROD with $$_JOB

3 
•HR  8837  IH
SEC.  3.  ASSIGNMENT  OF  SMALL  BUSINESS  PENSION  PLAN  1
STARTUP CREDITS. 2
(a)  I
NGENERAL.—Section  45E  of  the  Internal  Rev-3
enue  Code  of  1986,  as  amended  by  section  2,  is  amended  4
by adding at the end the following new subsection: 5
‘‘(h)  C
REDIT  FORELIGIBLESERVICEPROVIDERS.— 6
‘‘(1)  I
N  GENERAL.—In  the  case  of  an  eligible  7
entity  that  provides  services  with  respect  to  an  eligi-8
ble  employer  plan,  there  shall  be  allowed  as  a  credit  9
against  the  tax  imposed  by  this  chapter  for  the  tax-10
able  year  an  amount  determined  under  paragraph  11
(2)  for  each  of  the  first  3  credit  years  with  respect  12
to  such  plan,  provided  that  the  requirements  of  this  13
subsection are satisfied. 14
‘‘(2) A
MOUNT  OF  CREDIT.— 15
‘‘(A)   I
N   GENERAL.—The   amount   of   the   16
credit allowed under this subsection for any tax-17
able  year  shall  be  equal  to  the  credit  that  would  18
have   been   allowable   to   the   eligible   employer   19
under  subsection  (a)  for  such  taxable  year  (de-20
termined  without  regard  to  subsection  (f)),  sub-21
ject to the limitations of subsection (b). 22
‘‘(B)      D
ETERMINATIONOFCREDIT 23
YEARS.—For  purposes  of  this  subsection,  the  24
term ‘credit year’ means, with respect to a plan, 25
the  taxable  year  of  the  eligible  entity  which  in-26
VerDate Sep 11 2014     02:53 May 16, 2026    Jkt 069200    PO 00000    Frm 00003    Fmt 6652    Sfmt 6201    E:\BILLS\H8837.IH    H8837
kjohnson on DSK7ZCZBW3PROD with $$_JOB

4 
•HR  8837  IH
cludes  the  date  that  the  eligible  employer  plan  1
becomes  effective  with  respect  to  the  eligible  2
employer  and  the  two  taxable  years  immediately  3
following such taxable year. 4
‘‘(3)  E
LIGIBLE  ENTITY.—For  purposes  of  this  5
subsection,  the  term  ‘eligible  entity’  means,  with  re-6
spect  to  the  plan  for  which  the  credit  is  allowed  7
under subsection (a), an entity that— 8
‘‘(A)   with   respect   to   the   plan,   provides   9
services that generate qualified startup costs; 10
‘‘(B)   reduces   the   amount   of   fees   that   11
would  otherwise  be  charged  to  the  eligible  em-12
ployer  for  such  services  by  an  amount  not  less  13
than  the  credit  determined  under  paragraph  (2)  14
for the taxable year; and 15
‘‘(C)  obtains  th