PRIA Logo™
119-hr-8837119th CongressWALLET

RISE Act

Sponsored By: Representative Tenney, Claudia [R-NY-24]

Introduced

Summary

Would create bigger startup tax credits to push very small employers to offer retirement plans. It would also let service providers claim a parallel credit and applies to tax years beginning after December 31, 2026.

Show full summary
  • Very small employers. Qualified "microemployers" would get a new Credit for Microemployers that raises the startup credit to 100% and raises the per-employee cap to $2,500.
  • Service providers. Entities that set up plans could claim a Credit for Eligible Service Providers equal to the employer credit for the plan for the first 3 credit years if they lower fees by at least that credit and obtain a written employer certification. The bill bars double-claiming, makes the fee reduction nondeductible for the provider and not includible in the employer's gross income, and creates recapture rules if a provider receives more than the employer credit.
  • Employees at tiny firms. By increasing startup incentives, the bill aims to expand retirement plan availability at very small employers so more workers may gain access to employer plans.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Bigger startup credit for microemployers

This bill would create a startup tax credit for very small employers called "qualified microemployers." The credit would cover 100% of qualifying startup costs up to $2,500 per year. To qualify, an employer must meet a smaller employee-size test (using 10 instead of 100) and the employer's plan must accept payment of the matching contribution. The new credit would apply to tax years starting after December 31, 2026.

Tax credit for service providers

This bill would let an eligible service provider claim the startup tax credit for a new employer retirement plan for the first three years. The provider's credit would equal the amount the employer could have claimed for those years, within existing limits. To claim it, the provider would have to lower fees to the employer by at least the credit amount and get a written employer certification before providing services. The employer could not also claim the employer startup credit. Fee reductions would not be taxable income to the employer, and providers could not deduct the corresponding amount. If a provider gets more than the employer's allowable credit, the provider's tax would be increased to recapture the excess. These rules would apply to tax years starting after December 31, 2026.

Sponsors & CoSponsors

Sponsor

Tenney, Claudia [R-NY-24]

NY • R

Cosponsors

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 5/14/2026

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 5/14/2026

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 5/14/2026

  • Rep. Hamadeh, Abraham J. [R-AZ-8]

    AZ • R

    Sponsored 7/21/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation