After 2001, EGTRRA provides a tax credit of 50 percent of the costs associated with setting up and administering a new retirement plan for smaller employers (100 or fewer employees) for the plan's first three years. The maximum annual credit is $500. In order to be eligible for this credit, the employer cannot have maintained a retirement plan for any time over the prior three years. Additionally, the plan must cover at least one non-highly compensated employee (so a plan that covers only the business owner would not qualify).