I 

117TH CONGRESS 

2D SESSION H. R. 6738 

To amend the Internal Revenue Code of 1986 to provide a CSEC employee 

tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2022 

Mr. KIND (for himself 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 CSEC employee tax credit. 

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 ‘‘Retirement Tax Credit 

5 Parity for Cooperatives and Charities Act’’. 

6 SEC. 2. CSEC EMPLOYEE TAX CREDIT. 

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by inserting after section 25D the fol10 lowing new section: 


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1 ‘‘SEC. 25E. CSEC EMPLOYEE TAX CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli3 gible individual, there shall be allowed as a credit against 

4 the tax imposed by this subtitle for the taxable year an 

5 amount equal to 10 percent of so much of the employer 

6 retirement savings contributions made on behalf of the eli7 gible individual for the plan year ending with or within 

8 such taxable year as do not exceed $1,000. 

9 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 

10 section, the term ‘eligible individual’ means any individual 

11 who is eligible to participate in a CSEC defined contribu12 tion plan. 

13 ‘‘(c) EMPLOYER RETIREMENT SAVINGS CONTRIBU14 TIONS.—For purposes of this section, with respect to any 

15 employee, the term ‘employer retirement savings contribu16 tions’ means the amount of employer contributions (other 

17 than elective deferrals as defined in section 402(g)(3)) 

18 made to a CSEC defined contribution plan on behalf of 

19 such employee. 

20 ‘‘(d) CSEC DEFINED CONTRIBUTION PLAN.—For 

21 purposes of this section, the term ‘CSEC defined contribu22 tion plan’ means a defined contribution plan which— 

23 ‘‘(1) as of July 26, 2005, would be an eligible 

24 cooperative plan, as defined in section 104(c) of the 

25 Pension Protection Act of 2006, if such section ap26 plied to defined contribution plans, 


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1 ‘‘(2) as of January 1, 2021, was maintained by 

2 an employer that also participated in an eligible co3 operative plan, as defined in section 104(c) of the 

4 Pension Protection Act of 2006, 

5 ‘‘(3) would be described in subparagraph (B), 

6 (C), or (D) of section 414(y)(1) but for the fact that 

7 it is a defined contribution plan, or 

8 ‘‘(4) as of January 1, 2021, was maintained by 

9 an employer that also participated in a plan de10 scribed in subparagraph (B), (C), or (D) of section 

11 414(y)(1). 

12 ‘‘(e) INFLATION ADJUSTMENT.—In the case of any 

13 taxable year beginning after December 31, 2022, the 

14 $1,000 amount in subsection (a) shall be increased by an 

15 amount equal to— 

16 ‘‘(1) such dollar amount, multiplied by 

17 ‘‘(2) the cost-of-living adjustment determined 

18 under section 1(f)(3) for the calendar year in which 

19 the taxable year begins, determined by substituting 

20 ‘calendar year 2021’ for ‘calendar year 2016’ in sub21 paragraph (A)(ii) thereof. 

22 Any increase determined under the preceding sentence 

23 shall be rounded to the nearest multiple of $50.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2021. 

Æ 


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