26 U.S.C. § 45AA — Military spouse retirement plan eligibility credit for small employers

(a) In general An eligible small employer gets a tax credit equal to the sum of, for each military spouse who is its employee and joins its eligible retirement plan during the year: $200 per participating spouse, plus whatever the employer contributed to that plan for the spouse (not counting the spouse's own elective deferrals under section 402(g)(3)), up to $300. (b) Limitation A given spouse only counts toward this credit for the tax year in which they first started participating in the employer's plan, plus the next two tax years after that. (c) Eligible small employer Means an eligible employer as defined in section 408(p)(2)(C)(i)(I) — generally, a small business. (d) Military spouse (1) In general: A "military spouse" is, for a given employer, someone who is married (under section 7703's meaning, as of the employee's first day working for that employer) to a member of the uniformed services on active duty (as defined in title 10, section 101(a)(5)). The employer may rely on the employee's own certification — stating the spouse's name, rank, and service branch — to establish this. (2) Exclusion of highly compensated employees: For any employer, a highly compensated employee (as defined in section 414(q)) never counts as a "military spouse" for this credit, even if they would otherwise qualify. (e) Eligible defined contribution plan An employer's defined contribution plan (as defined in section 414(i)) qualifies as "eligible" if, under its own terms: (1) military spouses can join the plan no later than 2 months after starting work with the employer, and (2) once eligible, military spouses immediately get employer contributions at least as large as what a similarly-situated non-military-spouse employee would get only after 2 years of service, and immediately have a nonforfeitable right to keep the benefit built up from those employer contributions. (f) Aggregation rule All businesses treated as a single employer under the related-business rules in section 414(b), (c), (m), or (o) are treated as one employer for purposes of this section.