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A bipartisan group of House members has reintroduced the Retirement Investment in Small Employers (RISE) Act. The legislation is designed to help microbusinesses and service providers offer retirement plans and expand access to savings opportunities for American workers.
The SECURE 2.0 Act of 2022 strengthened retirement plan startup tax credits for small businesses with fewer than 50 employees by covering 100% of administrative and startup costs for new plans, up to $5,000 per year. However, the formula used to calculate these credits left many microbusinesses with fewer than 10 employees unable to fully benefit.
The RISE Act corrects this gap by ensuring that the smallest employers can leverage the full value of these tax incentives. This updated legislation also expands eligibility to include service providers, recognizing the growing number of independent and service-based businesses that play a critical role in servicing small businesses and providing affordable retirement plan options to their employees.
"Main street is the lifeblood of upstate New York communities, but too many lack the tools to offer retirement benefits to their employees," said Rep. Claudia Tenney, R-N.Y., who is one of the bill's sponsors. "The RISE Act ensures that microbusinesses can fully access the retirement plan tax credits already available under current law and expands eligibility so more employers can participate. This commonsense fix will help workers save for the future, strengthen small businesses and support long-term economic stability."
Reps. Brad Schneider, D-Ill., Adrian Smith, R-Neb., ad Linda Sanchez, D-Calif., joined Tenney in sponsoring the legislation. Key provisions of the act would:
- Expand eligibility to include service providers who support small businesses, such as payroll or plan administrators.
- Increase the minimum credit for employers with fewer than 10 employees. In the Senate version, this was raised from $500 to $2,500.
- Shift the credit claim process so service providers can apply the credit against their fees instead of requiring the business owner to track and collect it, reducing paperwork and administrative hurdles.
"Small businesses are the backbone of the American economy, yet too many still lack access to the tools and incentives needed to offer retirement plans to their workers," said Brian Graff, CEO of the American Retirement Association. "The RISE Act takes a smart, targeted approach to expanding retirement coverage by strengthening the startup tax credit for the smallest employers and reducing the administrative burdens that often stand in the way of offering a plan.
"By making it easier and more affordable for small businesses to provide workplace retirement benefits, Reps. Tenney, Schneider, Sánchez and Smith are helping more Americans build long-term financial security through the workplace retirement system."
A Senate version of the bill was introduced in May 2025 by Sen. Todd Budd, R-N.C., and Sen. Maggie Hassan, D-N.H.
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