SECURE 2.0 Sec. 102 application to 403(b)?

Sec. 102 uses the language "Tax Credit."  I am getting questions about its application to 403(b).  I think, unfortunately, that it cannot be applied as nonprofits do not pay income taxes, but I am reading about the application of the Health Care Tax Credit to nonprofit employers via the FICA tax and also an IRS article on filing a 990-T to claim the credit (again, Health Care at the time of this IRS article).  I am beginning to think that the application of this Sec 102 to nonprofits will require further input by the IRS.  Any thoughts or comments?

https://www.napa-net.org/secure-act-tax-credit-qas

Found this with the applicable Q&A shown below. Note that 2.0 just expanded what was available on this. 

Q3: How do not-for-profit organizations receive the 403(b)-start-up credit for offering new plan? Is the credit applicable to non-profit organizations?

A3: The credit is not applicable to tax-exempt entities because it is not a refundable credit. Therefore, the credit is not available for the adoption of a 403(b) plan. The types of plan that can qualify for the credit (for plan sponsors that are subject to taxation) are  qualified plans under 401(a), annuity plans under 403(a), simplified employee plans under 408(k), and SIMPLE plans under 408(p).

Thanks, CuseFan.  Have seen that information ad nauseam.  Looking for something that helps our nonprofit clients obtain this benefit.

On 3/2/2023 at 12:52 PM, Patricia Neal Jensen said:

I am beginning to think that the application of this Sec 102 to nonprofits will require further input by the IRS. 

I'm sort of thinking that IRS input won't be of any benefit - I expect it would need to be authorized by Congress? If so, I wouldn't hold my breath...

In the Internal Revenue Code of 1986, § 45E is under these divisions:

Subtitle A—Income taxes

            Chapter 1—Normal taxes and surtaxes

                        Subchapter A—Determination of tax liability

                                    Part IV—Credits Against Tax

                                                Subpart D—Business Related Credits (sections 38 to 45AA)

                                                            I.R.C. § 45E.

The § 45E credit is classed among the many that form § 38’s general business credit.

(Refundable credits are in subpart C—sections 31-37.)