; number of employees For purposes of this subsection, whether an employer is an eligible employer and the number of employees of an employer shall be determined under the rules of subsection (c), except that paragraph (2) thereof shall only apply to the taxable year during which the eligible employer plan to which this section applies is established. . (c) Disallowance of deduction Section 45E(e)(2) of such Code is amended to read as follows: (2) Disallowance of deduction No deduction shall be allowed— (A) for that portion of the qualified startup costs paid or incurred for the taxable year which is equal to so much of the portion of the credit determined under subsection (a) as is properly allocable to such costs, and (B) for that portion of the employer contributions by the employer for the taxable year which is equal to so much of the credit increase determined under subsection (f) as is properly allocable to such contributions. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. 103. Simplification and increase in Saver’s Credit (a) In general Section 25B(a) of the Internal Revenue Code of 1986 is amended by striking the applicable percentage and all that follows through $2,000 and inserting the following: 50 percent of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as does not exceed $3,000 . (b) Income limitation Section 25B(b) of such Code is amended to read as follows: (b) Income limitation (1) In general The amount allowable as a credit under subsection (a) for any taxable year (determined without regard to this subsection) shall be reduced (but not below zero) by an amount which bears the same ratio to the amount so allowable (as so determined) as— (A) the amount by which the taxpayer’s adjusted gross income exceeds the applicable threshold, bears to (B) $20,000. (2) Applicable threshold For purposes of this subsection, the applicable threshold is— (A) except as provided in