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Senators Hassan, Budd Introduce 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) introduced 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 would receive at least a $2,500 tax credit to help pay for the costs of creating retirement accounts.

“Small businesses are the backbone of our economy, and this bipartisan legislation will provide a tax cut for small businesses that will in turn help their employees build savings for retirement,” said Senator Hassan. “Our smallest businesses need to be able to compete with larger ones, and part of that is helping them offer good retirement plans for their employees. I urge my colleagues to support this commonsense, bipartisan legislation that will help more small businesses and their employees thrive.”

“Offering additional tax incentives to small businesses will make it easier for North Carolina’s Main Street shops to offer secure retirement plans for their employees. I’m proud to partner with Senator Hassan to propose a bill that will empower individuals to take control of their financial future,” said Senator Budd.

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 no small business will receive a tax credit less than $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. In 2019, several provisions that Senator Hassan introduced were passed into law as part of the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act, which helped small businesses offer retirement programs to their employees. In 2022, Senator Hassan helped pass into law the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, which expanded efforts to help more Americans save for retirement. Provisions Senator Hassan helped secure included measures to enable more businesses to join multiple employer plans (MEPs), expand tax cuts to small businesses who provide retirement benefits to their employees, increase retirement plan flexibility for public safety officers, and improve access for military families.