Background

With the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act in 2022, Congress established an income tax credit for small businesses that start certain types of retirement plans for their employees. Because nonprofit organizations generally have no income tax liabilities, they usually cannot take advantage of the credit.

To equalize retirement plan tax credits across for-profit and nonprofit entities, the Small Nonprofit Retirement Security Act would provide credits against nonprofit organizations’ payroll taxes to help offset the costs of starting up certain types of retirement plans for nonprofit employees, including those working in the religious sector.

On July 21, 2025, Reps. Vern Buchanan (R-FL), Jimmy Panetta (D-CA), Blake Moore (R-UT), and Brad Schneider (D-IL) joined Sens. James Lankford (R-OK) and Catherine Cortez Masto (D-NV) to introduce this bill in the 119th Congress.