Retirement Tax Credit Parity for Cooperatives and Charities Act

Bill: 117-hr-6738
Sponsor: full_name: Rep. Kind, Ron [D-WI-3]
Introduced: 2022-02-15
Policy area: Taxation
Latest action: action_date: 2022-02-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2022-02-15
action_desc: Introduced in House
text: <p><strong>Retirement Tax Credit Parity for Cooperatives and Charities Act</strong></p> <p>This bill allows an individual taxpayer who is eligible to participate in in a CSEC defined contribution pension plan a new tax credit for 10% of employer retirement savings contributions not exceeding $1,000 in a taxable year.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6738 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. Short title This Act may be cited as the Retirement Tax Credit Parity for Cooperatives and Charities Act . 2. CSEC employee tax credit (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section: 25E. CSEC employee tax credit (a) Allowance of credit In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 10 percent of so much of the employer retirement savings contributions made on behalf of the eligible individual for the plan year ending with or within such taxable year as do not exceed $1,000. (b) Eligible individual For purposes of this section, the term eligible individual means any individual who is eligible to participate in a CSEC defined contribution plan. (c) Employer retirement savings contributions For purposes of this section, with respect to any employee, the term employer retirement savings contributions means the amount of employer contributions (other than elective deferrals as defined in section 402(g)(3)) made to a CSEC defined contribution plan on behalf of such employee. (d) CSEC defined contribution plan For purposes of this section, the term CSEC defined contribution plan means a defined contribution plan which— (1) as of July 26, 2005, would be an eligible cooperative plan, as defined in section 104(c) of the Pension Protection Act of 2006, if such section applied to defined contribution plans, (2) as of January 1, 2021, was maintained by an employer that also participated in an eligible cooperative plan, as defined in section 104(c) of the Pension Protection Act of 2006, (3) would be described in subparagraph (B), (C), or (D) of section 414(y)(1) but for the fact that it is a defined contribution plan, or (4) as of January 1, 2021, was maintained by an employer that also participated in a plan described in subparagraph (B), (C), or (D) of section 414(y)(1). (e) Inflation adjustment In the case of any taxable year beginning after December 31, 2022, the $1,000 amount in subsection (a) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2021 for calendar year 2016 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021.