Sec. 14. Expanding small employer pension plan startup cost credit
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(2)of section 45E(d) of the Internal Revenue Code of 1986 (defining eligible employer plan) is amended by striking means a qualified employer plan and all that follows and inserting: means— a qualified employer plan within the meaning of section 4972(d), and a plan of which an automatic deferral IRA described in section 408B is a part. . Subsection
(a)of section 45E of such Code is amended by striking 50 percent of and all that follows and inserting the sum of— the applicable percentage of the qualified startup costs paid or incurred by the taxpayer during the taxable year, plus $25 multiplied by the number of employees of the employer who participate in any eligible employer plan of the employer for the first time in such taxable year. . Subsection
(d)of section 45E of such Code is amended by adding at the end the following new paragraph: The applicable percentage is— in the case of a plan described in subsection (d)(2)(A), 75 percent, or in the case of a plan described in subsection (d)(2)(B), 50 percent. . Paragraph
(2)of section 45E(c) of such Code (defining eligible employer) is amended— by striking qualified employer plan in each place it appears and inserting eligible employer plan , and by striking in the heading thereof and inserting qualified . eligible Paragraph
(1)of section 45E(b) of such Code is amended by striking $500 and inserting $750 ($2,000 in the case of qualified startup costs attributable to a plan described in subsection (d)(2)(A)) . The amendment made by this section shall apply to costs paid or incurred in taxable years beginning after the date of the enactment of this Act.