I 

116TH CONGRESS 

1ST SESSION H. R. 1938 

To amend the Internal Revenue Code of 1986 to provide a credit to small 

employers providing an eligible automatic contribution arrangement under 

a retirement savings plan. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2019 

Mrs. TRAHAN (for herself and Mr. KELLY of Pennsylvania) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit to small employers providing an eligible automatic contribution arrangement under a retirement savings plan. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Employer Re5 tirement Savings Auto-Enrollment Credit Act’’. 


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1 SEC. 2. SMALL EMPLOYER RETIREMENT SAVINGS AUTO2 MATIC ENROLLMENT CREDIT. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 45T. AUTO-ENROLLMENT CREDIT FOR RETIREMENT 

8 SAVINGS OPTIONS PROVIDED BY SMALL EM9 PLOYERS. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

11 the case of an eligible employer, the retirement auto-en12 rollment credit determined under this section for any tax13 able year is an amount equal to— 

14 ‘‘(1) $500 for any taxable year occurring during 

15 the credit period, and 

16 ‘‘(2) zero for any other taxable year. 

17 ‘‘(b) CREDIT PERIOD.—For purposes of subsection 

18 (a)— 

19 ‘‘(1) IN GENERAL.—The credit period with re20 spect to any eligible employer is the 3-taxable-year 

21 period beginning with the first taxable year for 

22 which the employer includes an eligible automatic 

23 contribution arrangement (as defined in section 

24 414(w)(3)) in a qualified employer plan (as defined 

25 in section 4972(d)) sponsored by the employer. 


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1 ‘‘(2) MAINTENANCE OF ARRANGEMENT.—No 

2 taxable year with respect to an employer shall be 

3 treated as occurring within the credit period unless 

4 the arrangement described in paragraph (1) is in5 cluded in the plan for such year. 

6 ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 

7 section, the term ‘eligible employer’ has the meaning given 

8 such term in section 408(p)(2)(C)(i).’’. 

9 (b) CREDIT TO BE PART OF GENERAL BUSINESS

10 CREDIT.—Subsection (b) of section 38 of the Internal 

11 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

12 the end of paragraph (31), by striking the period at the 

13 end of paragraph (32) and inserting ‘‘, plus’’, and by add14 ing at the end the following new paragraph: 

15 ‘‘(33) in the case of an eligible employer (as de16 fined in section 45T(c)), the retirement auto-enroll17 ment credit determined under section 45T(a).’’. 

18 (c) CLERICAL AMENDMENT.—The table of sections 

19 for subpart D of part IV of subchapter A of chapter 1 

20 of the Internal Revenue Code of 1986 is amended by in21 serting after the item relating to section 45S the following 

22 new item: 

‘‘Sec. 45T. Auto-enrollment credit for retirement savings options provided by 

small employers.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

Æ 


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