S. 2335

119th CONGRESS 1st Session

To require every employer to provide to their employees a retirement program with benefits equivalent to the Federal Employees Retirement System or to elect for their employees to participate in the Federal Employees Retirement System, and for other purposes.

IN THE SENATE OF THE UNITED STATES · July 17, 2025 · Sponsor: Mr. Sanders · Committee: Committee on Finance

Table of contents

• S. 2335
  • Sec. 36A. Credit for small employer and self-employed pension contributions.

Sec. 36A. Credit for small employer and self-employed pension contributions.

• (a) In general
  • In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed by subtitle A an amount equal to the contribution assistance amount with respect to such taxpayer for the taxable year.
• (b) Contribution assistance amount
  • In the case of an eligible taxpayer, for purposes of this section—
  • (1) In general
    • The contribution assistance amount is an amount equal to the applicable percentage of the qualified pension contributions paid by the eligible taxpayer during the taxable year.
  • (2) Applicable percentage
    • For purposes of paragraph (1), the applicable percentage is 50 percent, reduced (but not below zero) by the number of percentage points which—
      • in the case of an employer, bears the same ratio to 50 as the excess of—
        • (i) the gross receipts of the employer for the taxable year, over
        • (ii) $25,000,000, bears to
      • $75,000,000, and
      • in the case of a self-employed individual, bears the same ratio to 50 as the excess of—
        • (i) the income of the individual for the taxable year, over
        • (ii) $75,000, bears to
      • $50,000.
  • (3) Qualified pension contributions
    • The term qualified pension contributions means—
      • in the case of a covered non-Federal employer or covered self-employed individual, the contributions made by such employer or individual under sections 8423(a) and 8432(c) of title 5, United States Code,
      • in the case of any other employer, the nonelective contributions made by such employer to a covered retirement program (as defined in section 2 of the ) on behalf of the employees of the employer, and
      • in the case of any other self-employed individual, the contributions made by such individual to a covered retirement program (as so defined) of the individual.
• (c) Eligible taxpayers, etc
  • For purposes of this section—
  • (1) In general
    • The term eligible taxpayer means—
      • any covered non-Federal employer making an election under both sections 8423(a)(4)(E)(i) and 8432(c)(4)(E)(i) of title 5, United States Code not to receive a reduction in employer contributions,
      • any employer which is not a covered non-Federal employer,
      • any covered self-employed individual making an election under both sections 8423(a)(4)(E)(ii) and 8432(c)(4)(E)(ii) of title 5, United States Code not to receive a reduction in contributions, and
      • any self-employed individual who is not a covered self-employed individual.
  • (2) Covered non-Federal employer; covered self-employed individual
    • The terms and have the respective meanings given such terms by section 8401 of title 5, United States Code. covered non-Federal employer,covered self-employed individual
• (d) Coordination with other credits
  • (1) Business credit treated as part of general business credit
    • In the case of an employer, the credit which (but for this paragraph) would otherwise be allowed under subsection (a) for any taxable year shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
  • (2) Denial of double benefit
    • No deduction or credit shall be allowed under any other section of this title with respect to contributions to a plan (including the Federal Employees Retirement System under of title 5, United States Code) if credit is allowable with respect to such contributions under subsection (a) (determined without regard to this subsection). chapter 84