What does Preamble of RISE Act do?

This bill proposes to amend the Internal Revenue Code of 1986. It aims to provide a microemployer pension plan startup credit. The bill also seeks to permit the assignment of small business pension plan startup credits. The bill's stated purpose is 'to provide for a microemployer pension plan startup credit, to permit the assignment of small business pension plan startup credits, and for other purposes.'

What does SHORT TITLE. of RISE Act do?

This bill is formally titled the Retirement Investment in Small Employers Act or the RISE Act.

What does MICROEMPLOYER PENSION PLAN STARTUP CREDIT. of RISE Act do?

This section amends Section 45E of the Internal Revenue Code of 1986 to provide a credit for microemployers. The amendment modifies subsection (a) of Section 45E to increase the credit percentage from 50 percent to 100 percent for qualified microemployers. The amendment modifies subsection (b)(1) of Section 45E to increase the maximum credit amount from $500 to $2,500 for qualified microemployers. A 'qualified microemployer' is defined as an employer that would be an eligible employer if '10' were substituted for '100' in section 408(p)(2)(C)(i)(I), and whose plan accepts matching contributions under section 6433. The amendment applies to taxable years beginning after December 31, 2026.

What does ASSIGNMENT OF SMALL BUSINESS PENSION PLAN STARTUP CREDITS. of RISE Act do?

This section amends Section 45E of the Internal Revenue Code to establish a credit for eligible entities providing services related to eligible employer plans. The credit amount is equal to the credit the eligible employer would have received under subsection (a), subject to limitations in subsection (b). To be eligible, an entity must provide services generating qualified startup costs, reduce fees to the employer by at least the credit amount, and obtain employer certification. The employer certification requires information including the number of non-highly compensated employees, confirmation of no prior qualified plans for those employees, and a commitment not to claim startup costs separately. No credit is allowed to both the employer and an eligible entity for the same plan. Payments from the employer to the eligible entity related to the fee reduction are not treated as income or deductible expenses. The credit is not reduced in subsequent years due to changes in the employer's employee count. If the eligible entity receives more than the employer's allowable credit, the entity's tax is increased by the excess amount.

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RISE Act

Last updated: 5/14/2026 · Introduced: 5/14/2026

Author: Claudia Tenney (R-NY)

TL;DR (AI)

The RISE Act increases the tax credit for microemployers establishing pension plans, raising the percentage from 50% to 100% and the maximum amount from $500 to $2,500, starting in 2027.
The bill allows eligible entities providing services related to small business pension plans to receive a tax credit equal to what the employer would have received, provided they reduce fees and meet certification requirements.
This legislation prevents both employers and service providers from claiming startup costs for the same pension plan and ensures payments for fee reductions are not treated as income or deductible expenses.

119th Congressin committeeS. 1840(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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