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 auto-
matic contribution arrangement under a retirement sav-
ings plan. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Employer Re-
tirement Savings Auto-Enrollment Credit Act’’. 
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SEC. 2. SMALL EMPLOYER RETIREMENT SAVINGS AUTO-
MATIC ENROLLMENT CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45T. AUTO-ENROLLMENT CREDIT FOR RETIREMENT 
SAVINGS OPTIONS PROVIDED BY SMALL EM-
PLOYERS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible employer, the retirement auto-en-
rollment credit determined under this section for any tax-
able year is an amount equal to— 
‘‘(1) $500 for any taxable year occurring during 
the credit period, and 
‘‘(2) zero for any other taxable year. 
‘‘(b) CREDIT PERIOD.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—The credit period with re-
spect to any eligible employer is the 3-taxable-year 
period beginning with the first taxable year for 
which the employer includes an eligible automatic 
contribution arrangement (as defined in section 
414(w)(3)) in a qualified employer plan (as defined 
in section 4972(d)) sponsored by the employer. 
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‘‘(2) MAINTENANCE
OF
ARRANGEMENT.—No 
taxable year with respect to an employer shall be 
treated as occurring within the credit period unless 
the arrangement described in paragraph (1) is in-
cluded in the plan for such year. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ has the meaning given 
such term in section 408(p)(2)(C)(i).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘plus’’ at 
the end of paragraph (31), by striking the period at the 
end of paragraph (32) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(33) in the case of an eligible employer (as de-
fined in section 45T(c)), the retirement auto-enroll-
ment credit determined under section 45T(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 45S the following 
new item: 
‘‘Sec. 45T. Auto-enrollment credit for retirement savings options provided by 
small employers.’’. 
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