,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dagc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #b1 #bjbj
 ,ms4 ,collins 7for herself and ,ms4    
,hassan7 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 provide a credit to small      
employers for covering military spouses 
under retirement plans4  #a4 ,short     
title ,this ,act may be cited as the    
,military ,spouses ,retirement ,security
 ,act4  #b4 ,credit for small employers 
providing retirement plans for military 
spouses  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,u4      
,small employer provision of retirement 
savings for military spouses  7a7 ,in   
general ,for purposes of section #ch1 in
 the case of a covered small employer1  
the military spouse employee retirement 

plan credit determined under this       
section for the taxable year is an      
amount equal to the sum of-- 7#a7 #bjj  
for each eligible military spouse       
employee who is eligible to participate 
in an eligible employer plan during the 
plan year ending with or within such    
taxable year1 plus  7#b7 with respect to
 each eligible military spouse employee 
participating in such plan1 the lesser  
of-- 7,a7 the amount of employer        
contributions 7other than any           
contribution described in subparagraph  
7,b7 or 7,c7 of section #be;,b7d77#a7   
made under all eligible employer plans  
on behalf of such eligible military     
spouse during the plan year ending with 
or within such taxable year1 or  7,b7   
#cjj4  ,in the case of a defined benefit
 plan1 the amount treated as an employer
 contribution under paragraph 7#b77;,a7 
shall be the increase in the            
participant's nonforfeitable accrued    
benefit 7determined by using the rules  
of section #dag7;e77#c77 reduced by the 

amount of such increase attributable to 
employee contributions4  7b7 ,eligible  
employer plan ,for purposes of this     
section1 the term eligible employer plan
 means a qualified employer plan 7within
 the meaning of section #digb7;d77 in   
which all eligible military spouse      
employees of the covered small          
employer--  7#a7 are eligible to        
participate as of the later of the first
 day of the first plan year of the plan 
or the date the employee has been       
employed for at least #b months1  7#b7  
are eligible to receive matching        
contributions 7as defined in section    
#dja7m77 and nonelective contributions  
in the same manner as an employee 7other
 than a highly compensated employee7    
with at least #b years of service1 and  
7#c7 are fully vested in their accrued  
benefit under the plan upon commencement
 of participation4  7c7 ,covered small  
employer ,for purposes of this section1 
the term covered small employer means an
 eligible employer 7within the meaning  

of section #djh7p77#b77;,c77i774  7d7   
,eligible military spouse employee  7#a7
 ,in general ,the term eligible military
 spouse employee means any employee of  
the covered small employer who-- 7,a7   
has been employed by the employer for   
more than #b months1  7,b7 is not a     
highly compensated employee 7within the 
meaning of section #dad7q771 and  7,c7  
makes a certification to the small      
employer that1 as of the date such      
employee is hired by the employer1 such 
employee is married to an individual who
 has performed service in the uniformed 
services 7as defined in chapter #dc of  
title #ch1 ,united ,states ,code7 while 
on active duty for a period of more than
 #cj days 7including the date such      
employee is hired74  ,any certification 
under subparagraph 7,c7 shall include   
the servicemember's name1 rank1 and     
military branch and the employee's      
uniformed services identification card  
number4  7#b7 ,limitation ,an individual
 may not be treated as an eligible      

military spouse with respect to any     
covered small employer for more than #c 
taxable years4  4  7b7 ,credit ,to be   
part of general business credit ,section
 #ch7;b7 of the ,internal ,revenue ,code
 of #aihf is amended by striking plus at
 the end of paragraph 7#cb71 by striking
 the period at the end of paragraph     
7#cc7 and inserting 1 plus1 and by      
adding at the end the following new     
paragraph3  7#cd7 the military spouse   
employee retirement plan credit         
determined under section #de,u7a74  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 #aihf is    
amended by adding at the end the        
following new item3  ,sec4 #de,u4 ,small
 employer provision of retirement       
savings for military spouses4  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