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CIVIC HERALD
S 1840 · 119th Congress · SenateIn committee

Retirement Investment in Small Employers Act

In plain language: Beginning in the 2025 tax year, this bill updates federal tax credits available to small businesses that establish retirement plans for their employees. Under federal law, eligible small employers can claim tax credits to help offset the administrative and startup costs of providing retirement benefits like 401(k) plans. This legislation amends the rules governing how those startup tax credits apply.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, issue tags, provisions, stakeholders, summary
People affectedNot determinable from the text provided; no specific population or eligible entity counts are defined.
Fiscal magnitudeno CBO estimate published
Reach25provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Overall tax level−20Retirement programs−20Business taxation−25

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • Small employers starting retirement plansEligible for modified tax credits under Section 45E of the Internal Revenue Code for expenses related to starting a pension plan, effective for tax years beginning after December 31, 2024.provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Amends the small employer pension plan startup cost tax credit under Internal Revenue Code Section 45E, effective for taxable years beginning after December 31, 2024.

    provisional

How your members of Congress line up

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Timeline

How it moved.

  1. May 21, 2025Read twice and referred to the Committee on Finance.
  2. May 21, 2025Introduced in Senate

The original text

Read it for yourself.

Sources & provenance

Congress.govrefreshed 17 days ago

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