RISE Act

Key Points

• This bill, called the RISE Act, helps very small businesses with 10 or fewer employees set up retirement plans for their workers. It increases the tax credit for starting these plans from 50 percent to 100 percent of the costs.
• The maximum tax credit for these tiny businesses would jump from $500 to $2,500. This makes it much cheaper for a local shop or small office to offer benefits that help their employees save for the future.
• A key part of the plan allows small business owners to hand over their tax credit to the company managing the retirement plan. In return, that company must lower the fees they charge the business by the same amount.
• This credit transfer is helpful for new or very small businesses that might not owe enough in federal taxes to use the credit themselves. It turns a tax break into an immediate discount on professional services.
• If passed, these new rules would begin for the tax year starting in 2027. The bill is supported by both Republicans and Democrats on the House committee that handles tax laws.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.