119th Congress (2025-2026)

HR 8837

RISE Act

Introduced

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

The RISE Act aims to encourage small businesses to establish retirement plans by providing a tax credit for microemployers and allowing the assignment of startup credit to service providers. Specifically, it increases the microemployer pension plan startup credit and creates a new credit for eligible entities that provide services related to startup employer plans. This legislation is designed to improve retirement security for small business owners and their employees.

Key provisions

Increases the microemployer pension plan startup credit from 50% to 100% and increases the maximum credit amount from $500 to $2,500.
Establishes a new tax credit for eligible service providers who assist employers in establishing retirement plans.
Defines ‘credit year’ as the taxable year of the service provider that includes the plan’s effective date and the two following years.
Requires eligible service providers to reduce fees by at least the amount of the credit.
Requires employers to certify employee eligibility and non-establishment of prior qualified plans.
Creates a certification process for employers to verify information related to employee eligibility and plan history.
Prohibits double-claiming of credits by employers and service providers.
Addresses recapture of credits if the amount received by a service provider exceeds the allowable credit.

Who is affected

Small businesses (microemployers)
Small business owners

Positions across the country

No public positions recorded for this legislation.

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Legislative history

2026-05-14House

Referred to the House Committee on Ways and Means.

2026-05-14

Introduced in House

2026-05-14

Introduced in House

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May 14, 2026XMLView source

119th CONGRESS — 2d Session

H. R. 8837

IN THE HOUSE OF REPRESENTATIVES

A BILL

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.

1.Short title

This Act may be cited as the

Retirement Investment in Small Employers Act

RISE Act

2.Microemployer pension plan startup credit

(a)In generalSection 45E of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(g)Credit for microemployers

(1)In general

In the case of a qualified microemployer—

(A)subsection (a) shall be applied by substituting 100 percent for 50 percent, and

(B)subsection (b)(1) shall be applied by substituting $2,500 for $500 in subparagraph (A) thereof.

(2)Qualified microemployerFor purposes of this subsection, the term qualified microemployer means an employer which would be an eligible employer if section 408(p)(2)(C)(i)(I) were applied by substituting 10 for 100, but only if the eligible employer plan established or maintained by such employer, under the terms of the plan, accepts payment of the matching contribution under section 6433.

(b)Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2026.

3.Assignment of small business pension plan startup credits

(a)In generalSection 45E of the Internal Revenue Code of 1986, as amended by section 2, is amended by adding at the end the following new subsection:

(h)Credit for eligible service providers

(1)In generalIn the case of an eligible entity that provides services with respect to an eligible employer plan, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount determined under paragraph (2) for each of the first 3 credit years with respect to such plan, provided that the requirements of this subsection are satisfied.

(2)Amount of credit

(A)In generalThe amount of the credit allowed under this subsection for any taxable year shall be equal to the credit that would have been allowable to the eligible employer under subsection (a) for such taxable year (determined without regard to subsection (f)), subject to the limitations of subsection (b).

(B)Determination of credit yearsFor purposes of this subsection, the term credit year means, with respect to a plan, the taxable year of the eligible entity which includes the date that the eligible employer plan becomes effective with respect to the eligible employer and the two taxable years immediately following such taxable year.

(3)Eligible entityFor purposes of this subsection, the term eligible entity means, with respect to the plan for which the credit is allowed under subsection (a), an entity that—

(A)

with respect to the plan, provides services that generate qualified startup costs;

(B)

reduces the amount of fees that would otherwise be charged to the eligible employer for such services by an amount not less than the credit determined under paragraph (2) for the taxable year; and

(C)

obtains the certification described in paragraph (4) prior to claiming the credit.

(4)Employer certificationThe certification described in this paragraph is a written certification that—

(A)

is made by the eligible employer not later than the date on which the services generating the qualified startup costs for the plan for which the credit is allowed under subsection (a) are provided; and

(B)

includes—

(i)

the number of employees of the eligible employer who are not highly compensated employees (as defined in section 414(q)) and who are eligible to participate in the eligible employer plan maintained by the eligible employer as of the date such plan is established;

(ii)

that neither the employer nor any predecessor established or maintained a qualified employer plan with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are in the qualified employer plan during the 3-taxable year period immediately preceding the 1st taxable year for which the credit under this section is otherwise allowable for the qualified employer plan;

(iii)

that the employer will not claim a tax credit for qualified start up costs with respect to the plan for any taxable year;

(iv)

that the employer has not provided a certification to any other service provider for purposes of claiming tax credits with respect to the plan; and

(v)

such other information as the Secretary may require in published regulations.

(5)Coordination with credit to employerNo credit shall be allowed under subsection (a) to an eligible employer with respect to a plan for which a credit is allowed under this subsection to an eligible entity with respect to such plan.

(6)Tax treatment of paymentsWith respect to the reduction in fees described in paragraph (3)(B), such payment—

(A)

shall not be includible in the gross income of the employer, and

(B)

with respect to the eligible entity, shall not be deductible under this title.

(7)Certain other requirementsThe tax credit allowed to an eligible entity under paragraph (1) will not be reduced in taxable years following the first credit year due to a change in the number of employees of the eligible employer described in subparagraph (b)(1)(B)(i).

(8)RecaptureIf the amount received by an eligible entity with respect to a qualified plan is greater than the credit under subsection (a) that would otherwise (but for this subsection) be allowable to such employer with respect to such qualified plan, for example because the employer is not an eligible employer or incorrectly certifies the number of employees under (4)(B)(i), the tax imposed on such eligible entity under this chapter for the taxable year in which the credit is received with respect to such qualified plan shall be increased by the amount by which the credit received exceeds the amount that would otherwise (but for this subsection) be allowable to such employer.

(b)Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2026.

HR 8837

Bill overview

Key provisions

Who is affected

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Bill text

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Positions across the country

Bill overview

Key provisions

Who is affected

Sponsors

Primary sponsor

Cosponsors

Related bills

Positions across the country

Arguments in favor

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Bill text

Notable changes

Positions across the country