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119-s-2365119th CongressWALLET

Small Nonprofit Retirement Security Act of 2025

Sponsored By: Senator Lankford, James [R-OK]

Introduced

Summary

This bill would allow small tax-exempt employers to use startup and auto-enrollment retirement tax credits. It would let those nonprofits convert those credits into refundable offsets against payroll taxes so tax-exempt employers can actually benefit from the incentives.

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Bill Overview

Analyzed Economic Effects

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

Payroll tax break for small nonprofits

If enacted, small tax-exempt employers (for example, nonprofits) would be able to use their startup or auto-enroll retirement credit to reduce their employer Social Security payroll tax. The amount usable would be the smaller of the credit amount or the payroll tax the employer paid in the calendar year when the taxable year begins. The annual total across quarters could not exceed the employer Social Security tax for that year. This would apply to taxable years beginning after December 31, 2024.

Protect Social Security trust funds

If enacted, the bill would transfer money from the general fund into the Social Security Old-Age and Survivors and Disability trust funds to match revenue losses caused by these tax changes. The transfers would equal the reduction in Treasury revenues and be timed to replicate transfers that would have occurred without the bill. This is meant to help protect Social Security benefit payments.

Sponsors & CoSponsors

Sponsor

Lankford, James [R-OK]

OK • R

Cosponsors

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 7/21/2025

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 9/10/2025

Roll Call Votes

No roll call votes available for this bill.

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