Sponsors (2)
The bill increases retirement incentives and coverage through expanded employer and saver tax credits while raising revenue from higher taxes on wealthy individuals and corporations—but it swaps budgetary costs (revenue lost to credits) and targeted exclusions/eligibility limits that complicate distributional, compliance, and fiscal trade‑offs.
C corporations and top-bracket taxpayers will face higher rates, producing materially more federal revenue available to fund services or reduce deficits.
Small employers (and their employees) get stronger financial incentives—larger startup credits and explicit employer-contribution credits—that lower plan setup and contribution costs and should encourage more small businesses to offer retirement plans.
Individuals without workplace retirement plans (including unemployed or between-jobs filers) can claim a 50% credit on qualifying IRA/UP contributions up to the ERISA base amount, reducing tax liability and encouraging retirement saving.
Expanding and increasing multiple retirement-related tax credits reduces federal receipts, which could widen deficits or require offsets (higher taxes elsewhere, reduced spending, or transfers), complicating the federal budget picture.
Raising the top individual marginal rate and increasing C-corporation taxes will reduce after-tax income for high earners and firms and could discourage investment, hiring, or work effort, with spillovers to economic growth and wages.
Employers (and their workers) who missed required ERISA contributions in the current or prior four taxable years are barred from the new credits, denying relief to some struggling or administratively noncompliant employers and their employees.
Based on analysis of 8 sections of legislative text.
Creates new employer and individual retirement tax credits and raises the top individual rate to 39.6% and the corporate rate to 23%, effective after 2024.
Introduced October 31, 2025 by Scott Peters · Last progress October 31, 2025
Creates new tax incentives and rules to expand retirement saving while raising some federal tax rates to help pay for them. The bill expands and changes small-employer startup credits, creates a new employer-level credit that pays a percentage of required employer retirement contributions, creates a new individual saver credit for people without workplace plans, and raises the top individual and corporate income tax rates (effective for tax years beginning after Dec. 31, 2024). It also inserts new ERISA subtitle language (text not provided) and directs transfers to Social Security trust funds to offset revenue effects.