Small Nonprofit Retirement Security Act of 2025

This bill creates tax credits for small tax-exempt nonprofits (like charities, schools, and religious organizations) to help them start or maintain retirement plans for their employees. It provides two specific credits: one for covering initial setup costs of a pension plan and another for automatically enrolling employees in retirement savings. The credits reduce the employer’s payroll tax liability, capped at the amount of payroll tax paid during the year. The changes apply to taxable years beginning after December 2024.