Retirement Tax Credit Parity for Cooperatives and Charities Act

“25E. CSEC employee tax credit

“(a) Allowance of credit—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 10 percent of so much of the employer retirement savings contributions made on behalf of the eligible individual for the plan year ending with or within such taxable year as do not exceed $1,000.

“(b) Eligible individual—For purposes of this section, the term “eligible individual” means any individual who is eligible to participate in a CSEC defined contribution plan.

“(c) Employer retirement savings contributions—For purposes of this section, with respect to any employee, the term “employer retirement savings contributions” means the amount of employer contributions (other than elective deferrals as defined in section 402(g)(3)) made to a CSEC defined contribution plan on behalf of such employee.

“(d) CSEC defined contribution plan—For purposes of this section, the term “CSEC defined contribution plan” means a defined contribution plan which—

“(1) as of July 26, 2005, would be an eligible cooperative plan, as defined in section 104(c) of the Pension Protection Act of 2006, if such section applied to defined contribution plans,

“(2) as of January 1, 2021, was maintained by an employer that also participated in an eligible cooperative plan, as defined in section 104(c) of the Pension Protection Act of 2006,

“(3) would be described in subparagraph (B), (C), or (D) of section 414(y)(1) but for the fact that it is a defined contribution plan, or

“(4) as of January 1, 2021, was maintained by an employer that also participated in a plan described in subparagraph (B), (C), or (D) of section 414(y)(1).

“(e) Inflation adjustment—In the case of any taxable year beginning after December 31, 2022, the $1,000 amount in subsection (a) shall be increased by an amount equal to—

“(1) such dollar amount, multiplied by

“(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2021” for “calendar year 2016” in subparagraph (A)(ii) thereof.”