1. Retirement plan re-enrollment credit for small employers (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: 45BB. Credit for re-enrollment provisions in plans provided by small employers (a) In general For purposes of section 38, in the case of an eligible employer, the retirement re-enrollment credit determined under this section for any taxable year is an amount equal to— (1) $500 for any taxable year occurring during the credit period, and (2) zero for any other taxable year. (b) Credit period For purposes of subsection (a)— (1) In general The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes a re-enrollment provision in an eligible automatic contribution arrangement under a qualified employer plan (as defined in section 4972(d)) maintained by the employer. (2) Maintenance of arrangement No taxable year with respect to an employer shall be treated as occurring within the credit period unless the provision described in paragraph (1) is included in the plan for such year. (c) Re-Enrollment provision For purposes of this section— (1) In general The term re-enrollment provision means a provision of an eligible automatic contribution arrangement under which each employee eligible to participate in the arrangement who is not contributing or is contributing less than the percentage applicable to an eligible employee in the first year of eligibility is treated as being in such first year of eligibility in each applicable year with respect to the employee. (2) Election out The election treated as having been made under paragraph (1) shall cease to apply with respect to any employee if such employee makes an affirmative election— (A) not to have such contributions made, or (B) to make elective contributions at a level specified in such affirmative election. (3) Applicable year every third year (A) In general