RISE Act
- Bill Number
- H.R. 8837
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-08T17:31:15Z
AI-Generated Summary
Purpose This legislation aims to encourage small employers, particularly very small businesses, to establish retirement plans by enhancing tax incentives and allowing service providers to claim related credits in exchange for reduced fees.
Key Provisions
- Microemployer Credit Enhancement: Amends Section 45E of the Internal Revenue Code to create a special category for "qualified microemployers" (employers with 10 or fewer employees). These employers receive a 100% tax credit (instead of 50%) for qualified startup costs, with the annual limit raised to $2,500 (instead of $500). The plan must allow matching contributions under Section 6433.
- Credit Assignment to Service Providers: Adds a new subsection allowing eligible entities (such as plan administrators or service providers) to claim the startup credit directly for the first three years of a plan. The provider must reduce its fees to the employer by at least the credit amount and obtain a written certification from the employer confirming employee counts, prior plan history, and that the employer will not claim the credit.
- Coordination and Safeguards: Prevents double-claiming of the credit. Reductions in fees are not treated as taxable income to the employer or deductible by the provider. The credit amount does not decrease if the employer's employee count changes. A recapture rule applies if the credit is overclaimed due to incorrect certification.
- Effective Date: Both changes apply to taxable years beginning after December 31, 2026.
Significant Changes to Existing Law
- Expands the existing small business pension startup credit by introducing a higher-benefit tier for microemployers.
- Creates a new mechanism for assigning the credit to third-party service providers, which was not previously allowed under Section 45E.
- Adds detailed certification and anti-abuse rules to support the assignment option.
Potential Impacts
- On Government Agencies: The IRS would administer an expanded credit program, including new certification processes and recapture procedures.
- On Citizens and Businesses: Small employers may face lower net costs to start retirement plans, potentially increasing plan adoption. Employees of microemployers could gain access to new retirement options.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Microemployers and small businesses (primary beneficiaries of enhanced credits).
- Retirement plan service providers (can claim credits by lowering fees).
- Employees of qualifying small employers.
- The Internal Revenue Service (responsible for implementation and oversight).
Notable Legal, Constitutional, or Political Implications
- Operates entirely within existing tax credit authority under the Internal Revenue Code; no new constitutional questions are raised by the text.
- Focuses on tax policy adjustments to promote retirement savings without altering regulatory structures or creating new mandates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Tenney, Claudia [R-NY-24]
Cosponsors (3)
Rep. Schneider, Bradley Scott [D-IL-10], Rep. Smith, Adrian [R-NE-3], Rep. Sánchez, Linda T. [D-CA-38]
Recent Actions
- 2026-05-14: Referred to the House Committee on Ways and Means.
- 2026-05-14: Introduced in House
- 2026-05-14: Introduced in House
Bill Versions
- Retirement Investment in Small Employers Act — issued 2026-05-14 — PDF (7 pages)