Press Release:
Rep. Claudia Tenney (NY-24), alongside Rep. Dan Kildee (MI-8), introduced H.R. 6007, the Retirement Investment in Small Employers Act (RISE Act) to incentivize micro-businesses with fewer than 10 employees to adopt retirement plans, helping more workers save for retirement.
The SECURE 2.0 Act of 2022 enhanced the retirement plan startup tax credits for small businesses with fewer than 50 employees to create incentives to adopt new plans. SECURE 2.0 allows for 100 percent of retirement plan administrative and startup costs to be covered for new plans, up to $5,000 per year. However, the law did not amend the formula relied upon to determine the amount an employer may claim in retirement plan startup tax credits, leaving the smallest micro-businesses and their employees unable to take full advantage of the credit. The RISE Act rectifies this issue, ensuring that micro-businesses benefit in the same manner as larger businesses.
"Congress must empower and reaffirm our commitment to small businesses across the country by taking steps to grant them a competitive edge in our economy," said Congresswoman Tenney. "I introduced the Retirement Investment in Small Employers Act along with Congressman Kildee today to enable micro-businesses across NY-24 and the nation to offer their employees robust retirement plans and allow their employees to save for the future. I remain committed to advocating for tax policies that work in favor of our small businesses and hardworking families."
“In mid-Michigan, small businesses support thousands of good-paying jobs and fuel our local economy,” said Congressman Kildee. “I am proud to work introduce legislation with Congresswoman Tenney to help more employers set up retirement plans, ensuring more Michigan workers can save for retirement. This bipartisan bill is a win for small business owners and workers alike.”
“All businesses, regardless of size, deserve the same opportunity and access to tax credits to help offset the costs of offering a retirement plan to their employees,” said Michael Majors, Paychex vice president of HR Solutions. “Paychex is proud to endorse Rep. Claudia Tenney’s and Rep. Dan. Kildee’s legislation to expand tax credits for micro-sized businesses which give incentives to offer retirement plans to help their employees save for the future.”
