tribution plan of the employer and the 2 succeeding tax-
able years. 
‘‘(c) ELIGIBLE SMALL EMPLOYER.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘eligible small 
employer’ means an eligible employer (as defined in 
section 408(p)(2)(C)(i)(I)). 
‘‘(2) APPLICATION OF 2-YEAR GRACE PERIOD.— 
A 
rule 
similar 
to 
the 
rule 
of 
section 
408(p)(2)(C)(i)(II) shall apply for purposes of this 
section. 
‘‘(d) MILITARY SPOUSE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘military spouse’ 
means, with respect to any employer, any individual 
who is married (within the meaning of section 7703 
as of the first date that the employee is employed by 
the employer) to an individual who is a member of 
the uniformed services (as defined in section 
101(a)(5) of title 10, United States Code). For pur-
poses of this section, an employer may rely on an 
employee’s certification that such employee’s spouse 
is a member of the uniformed services if such certifi-
cation provides the name, rank, and service branch 
of such spouse. 
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‘‘(2) EXCLUSION
OF
HIGHLY
COMPENSATED 
EMPLOYEES.—With respect to any employer, the 
term ‘military spouse’ shall not include any indi-
vidual if such individual is a highly compensated em-
ployee of such employer (within the meaning of sec-
tion 414(q)). 
‘‘(e) ELIGIBLE DEFINED CONTRIBUTION PLAN.— 
For purposes of this section, the term ‘eligible defined con-
tribution plan’ means, with respect to any eligible small 
employer, any defined contribution plan (as defined in sec-
tion 414(i)) of such employer if, under the terms of such 
plan— 
‘‘(1) military spouses employed by such em-
ployer are eligible to participate in such plan not 
later than the date which is 2 months after the date 
on which such individual begins employment with 
such employer, and 
‘‘(2) military spouses who are eligible to partici-
pate in such plan— 
‘‘(A) are immediately eligible to receive an 
amount of employer contributions under such 
plan which is not less than the amount of such 
contributions that a similarly situated partici-
pant who is not a military spouse would be eli-
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gible to receive under such plan after 2 years 
of service, and 
‘‘(B) immediately have a nonforfeitable 
right to the employee’s accrued benefit derived 
from employer contributions under such plan. 
‘‘(f) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (b), (c), (m), or (o) of 
section 414 shall be treated as one employer for purposes 
of this section.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (32), by strik-
ing the period at the end of paragraph (33) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(34) in the case of an eligible small employer 
(as defined in section 45U(c)), the military spouse 
retirement plan eligibility credit determined under 
section 45U(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45U. Military spouse retirement plan eligibility credit for small employ-
ers.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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