US SB1840

Amends Section 45E of the Internal Revenue Code to create an enhanced pension plan startup credit for "qualified microemployers" (businesses with 10 or fewer employees, reduced from the standard 100-employee threshold)

Increases the startup credit percentage from 50% to 100% of qualified startup costs for eligible microemployers

Raises the maximum credit amount from $500 to $2,500 per year for qualifying microemployers

Requires participating employer plans to accept matching contribution payments under Section 6433 to qualify for the enhanced credit

Effective for taxable years beginning after December 31, 2024