Senators Hassan & Budd Reintroduce Bipartisan Bill to Cut Taxes for Small Businesses to Provide Retirement Plans

WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Ted Budd (R-NC) reintroduced bipartisan legislation to cut taxes for small businesses with fewer than 10 employees that create retirement accounts for their employees. The current tax credit that helps small businesses pay for the costs of starting retirement plans for employees is often insufficient for the smallest businesses, as the tax credit is provided on a per-employee basis. This legislation would ensure that small businesses with under 10 employees can receive at least a $2,500 tax credit to help pay for the costs of creating retirement accounts. 

“Small businesses are the backbone of the Granite State economy, and they need to be able to compete with larger ones,” said Senator Hassan. “Especially as small businesses continue to face rising costs, this bipartisan legislation will provide small businesses with the tax relief that they need to be able to offer good retirement plans to their employees, helping both business owners and workers build financial security for the future. I urge my colleagues on both sides of the aisle to join us in advancing this commonsense, bipartisan legislation that strengthens our economy and helps hardworking Americans prepare for retirement.” 

Senator Budd said, “America’s small businesses are the foundation of our economy and at the forefront of job growth. By equipping Main Street with the means to offer retirement plans, we are not only helping to create a pathway to financial security for millions of workers, but also laying the foundation for long-term economic growth. I am proud to lead this bipartisan legislation alongside Senator Hassan as we work to ensure retirement plans are within reach for hardworking Americans.” 

The Retirement Investment in Small Employers (RISE) Act raises the floor for the existing $250 per-employee tax credit available to small businesses to create retirement plans, ensuring that all small businesses can receive a tax credit of at least $2,500. These tax cuts will help small businesses that have fewer than 10 employees offer retirement savings options to their employees. 

Senator Hassan has helped pass into law two bipartisan packages – the original SECURE Act and the SECURE 2.0 Act – to increase access to retirement savings options, and she and her colleagues first established the program that the RISE Act is expanding in that legislation. Provisions Senator Hassan helped secure included measures to enable more businesses to join multiple employer plans (MEPs), expand tax cuts to small businesses that provide retirement benefits to their employees, increase retirement plan flexibility for public safety officers, and improve access for military families. 

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