,,ii  #aadth ,,congress  #b;d ,session  
,s4 #ccch  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ae1
 #bjaf ,mr4 ,burr 7for himself and ,mr4 
,bennet7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to encourage small businesses to  
enroll their employees in retirement    
savings options1 and for other purposes4
  #a4 ,short title ,this ,act may be    
cited as the ,small ,business ,employee 
,retirement ,savings ,act of #bjaf4  #b4
 ,increase in credit limitation for     
small employer pension plan startup     
costs  7a7 ,in general ,paragraph 7#a7  
of section #de;,e7b7 of the ,internal   
,revenue ,code of #aihf is amended to   
read as follows3  7#a7 for the first    
credit year and each of the #b taxable  
years immediately following the first   
credit year1 the greater of--  7,a7     
#ejj1 or  7,b7 the lesser of--  7i7 #bej
 for each employee of the eligible      

employer who is not a highly compensated
 employee 7as defined in section        
#dae7q77 and who is eligible to         
participate in the eligible employer    
plan maintained by the eligible         
employer1 or  7ii7 #e1jjj1 and  4  7b7  
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjae4  #c4 ,credit for small employers 
adopting auto-enrollment options  7a7   
,in general ,subpart ,d of part ,,iv of 
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #de,s4          
,auto-enrollment option for retirement  
savings options provided by small       
employers  7a7 ,in general ,for purposes
 of section #ch1 in the case of a small 
employer1 the retirement auto-enrollment
 credit determined under this section is
 an amount equal to #ejj for any taxable
 year in the credit period4  7b7 ,credit
 period ,for purposes of subsection     

7a7-- 7#a7 ,in general ,the credit      
period with respect to any small        
employer is the #c-taxable-year period  
beginning with the first taxable year   
for which the employer includes an      
eligible automatic contribution         
arrangement 7as defined in section      
#dad7w77#c77 in a qualified retirement  
plan 7as defined in section #digd7;c77  
sponsored by the employer1 but only if  
the plan maintains such arrangement     
throughout such period4  7#b7 ,credit   
permissible in start-up year ,the first 
taxable year in the credit period may be
 the same taxable year as the first     
credit year 7as defined in section      
#de;,e7d77#c774  7#c7 ,employer must    
remain small employer ,notwithstanding  
paragraph 7#a71 the credit period with  
respect to any small employer shall end 
with the earlier of--  7,a7 the last    
taxable year in such period determined  
without regard to this paragraph1 or    
7,b7 the last taxable year in which such
 employer is a small employer4  7c7     

,small employer ,for purposes of this   
section1 the term small employer means  
any employer for any taxable year if the
 number of employees employed by such   
employer during such taxable year does  
not exceed #ajj4 ,all employers treated 
as a single employer under section 7a7  
or 7b7 of section #eb shall be treated  
as a single employer for purposes of    
this section4  4  7b7 ,credit ,to be    
part of general business credit         
,subsection 7b7 of section #ch of the   
,internal ,revenue ,code of #aihf is    
amended by striking plus at the end of  
paragraph 7#ce71 by striking the period 
at the end of paragraph 7#cf7 and       
inserting 1 plus1 and by adding at the  
end the following new paragraph3  7#cg7 
in the case of a small employer 7as     
defined in section #de,s7c771 the       
retirement auto-enrollment credit       
determined under section #de,s7a74  4   
7c7 ,clerical amendment ,the table of   
sections for subpart ,d of part ,,iv of 
subchapter ,a of chapter #a of the      

,internal ,revenue ,code of #aihf1 as   
amended by section #b1 is amended by    
inserting after the item relating to    
section #de,r the following new item3   
,sec4 #de,s4 ,auto-enrollment option for
 retirement savings options provided by 
small employers4  4  7d7 ,effective date
 ,the amendments made by this section   
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  #d4 ,removal of #aj percent cap  
after first plan year from automatic    
enrollment safe harbor  7a7 ,in general 
,clause 7iii7 of section                
#dja7k77#ac77;,c7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking 1 does not exceed #aj percent1 
and is at least and inserting and is4   
7b7 ,conforming amendments  7#a7        
,subclause 7,i7 of section              
#dja7k77#ac77;,c77iii7 of the ,internal 
,revenue ,code of #aihf is amended by   
striking #c percent and inserting at    
least #c percent1 but not greater than  
#aj percent14  7#b7 ,subclause 7,,ii7 of

 section #dja7k77#ac77;,c77iii7 of such 
,code is amended by striking #d percent 
and inserting at least #d percent4  7#c7
 ,subclause 7,,iii7 of section          
#dja7k77#ac77;,c77iii7 of such ,code is 
amended by striking #e percent and      
inserting at least #e percent4  7#d7    
,subclause 7,,iv7 of section            
#dja7k77#ac77;,c77iii7 of such ,code is 
amended by striking #f percent and      
inserting at least #f percent4  7c7     
,effective date ,the amendments made by 
this section shall apply to plan years  
beginning after the date of enactment of
 this ,act4