S 4173

The Military Spouses Retirement Security Act creates a tax credit for small businesses that include military spouses in their retirement plans. This credit, known as the Military Spouse Employee Retirement Plan Credit, provides a tax benefit to small employers who offer retirement plans to eligible military spouses. The credit is calculated based on the number of eligible employees and the employer's contributions to the plan, up to a maximum of $200 per employee or $300 per employee, whichever is less. The bill also establishes definitions for key terms like ‘covered small employer’ and ‘eligible military spouse employee’ and clarifies the credit’s integration into the general business credit.