Increase in credit for small employer pension plan startup costs

(a) In general Paragraph (1) of section 45E(b) of the Internal Revenue Code of 1986 is amended by striking $500 and inserting $2,000. (b) Eligible employers Paragraph (1) of section 45E(c) of the Internal Revenue Code of 1986 is amended by inserting, applied by substituting 250 for 100 after 408(p)(2)(C)(i). (c) Penalty for noncompliant employers Subsection (c) of section 45E of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Employers failing to make required contributions Such term shall not include an employer subject to the requirement of section 802(a)(1) of the Employee Retirement Income Security Act of 1974 that fails, within the time prescribed by the Secretary, to make any required contribution under such section 802 for the taxable year or any of the 4 taxable years preceding such year.. (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.