Microemployer pension plan startup credit

(a) In general Section 45E of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Credit for microemployers (1) In general In the case of a qualified microemployer— (A) subsection (a) shall be applied by substituting 100 percent for 50 percent, and (B) subsection (b)(1) shall be applied by substituting $2,500 for $500 in subparagraph (A) thereof. (2) Qualified microemployer For purposes of this subsection, the term qualified microemployer means an employer which would be an eligible employer if section 408(p)(2)(C)(i)(I) were applied by substituting 10 for 100, but only if the eligible employer plan established or maintained by such employer, under the terms of the plan, accepts payment of the matching contribution under section 6433.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2024.