in section 414(dd)(8)), or an arrangement described in 4980J(a)(2), and (ii) is described in 408(p)(2)(C)(i), and (B) did not maintain an eligible employer plan during the portion of the calendar year preceding the commencement of such arrangement and the 2 preceding calendar years. (2) Credit period The term credit period means the first 3 calendar years beginning after the date of the enactment of this section in which the eligible employer participates in the arrangement. (3) Eligible employer plan The term eligible employer plan means a qualified employer plan within the meaning of section 4972(d). (c) Other rules For purposes of this section, rules similar to the rules of section 45E(e)(2) shall apply. . (b) Credit allowed as part of general business credit Section 38(b) is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus , and by adding at the end the following new paragraph: (42) the small employer automatic IRA arrangement credit determined under section 45BB(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45BB. Credit for certain small employer automatic IRA arrangements. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024. 4. Treatment of automatic IRA arrangements under State law (a) Preemption of State law This Act, and the amendments made thereby, shall supersede any law of a State which would directly or indirectly prohibit or restrict an automatic IRA arrangement (as defined in section 414(dd)(8) of the Internal Revenue Code of 1986). (b) Employers maintaining automatic IRA arrangement (1) In general Any employer maintaining such an arrangement shall not be subject to any requirement imposed by a State or political subdivision thereof to facilitate a payroll deduction savings program of a State or political subdivision thereof. (2)