With the intention of promoting the establishment of new retirement plans by small employers, Internal Revenue Code Section 45E allows a 50% tax credit to certain employers for costs incurred during the initial three years of the plan's existence.  The maximum allowable tax credit is $500 per year for each of the first three years ($1,500 in total).  Eligible employers include those with 100 or fewer employees (counting only employees who received compensation in excess of $5,000) in the prior year.  Eligible costs for the tax credit include expenses incurred in establishing and administering a plan during the first three years (which, optionally, may include the year prior to the effective date of the plan).  Eligible plans include 401(k), profit sharing, defined benefit, and other tax-qualified retirement plans, as well as SEPs and SIMPLE 401(k) plans.    

Please consult your tax advisor to determine if you are eligible for this employer tax credit.  There are several issues and qualifications to consider; e.g. the 50% tax credit is in lieu of a tax deduction; employers within certain related groups are treated as one employer for tax credit purposes; an eligible plan must cover at least one non-highly compensated employee, etc.