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Internal Revenue Code of 1986

The official body of tax laws in the United States, which outlines rules for income, excise, estate, gift, and other taxes.

Tax Credit

A direct reduction in the amount of tax owed, dollar-for-dollar. Unlike a deduction, which reduces taxable income, a credit directly lowers the final tax bill.

Microemployer

For the purpose of this bill, an employer with 10 or fewer employees.

Eligible Employer Plan

A retirement savings plan (like a 401(k) or SIMPLE IRA) that meets certain IRS requirements for small business tax credits.

Matching Contribution

Money an employer contributes to an employee's retirement account, often based on a percentage of what the employee contributes.

Taxable Year

The annual accounting period for keeping records and reporting income and expenses. For most individuals, this is the calendar year.