as exceed 6 percent but do not exceed 10 percent of compensation. (ii) Application of rules for matching contributions The rules of clause (ii) of paragraph (12)(B) and clauses (iii) and (iv) of paragraph (13)(D) shall apply for purposes of clause (i) but the rule of clause (iii) of paragraph (12)(B) shall not apply for such purposes. The rate of matching contribution for each incremental deferral must be at least as high as the rate specified in clause (i), and may be higher, so long as such rate does not increase as an employee’s rate of elective contributions increases. . (b) Matching contributions and employee contributions Section 401(m) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (13) as paragraph (14) and by inserting after paragraph (12) the following new paragraph: (13) Alternative method for secure deferral arrangements A defined contribution plan shall be treated as meeting the requirements of paragraph (2) with respect to matching contributions and employee contributions if the plan— (A) is a secure deferral arrangement (as defined in subsection (k)(14)), (B) meets the requirements of clauses (ii) and (iii) of paragraph (11)(B), and (C) provides that matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 10 percent of the employee’s compensation. . (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2017. 10. Credit for employers with respect to modified safe harbor requirements (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45S. Credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements (a) General rule For purposes of section 38, in the case of a small employer, the safe harbor adoption credit determined under this section for any taxable year is the