A bill to amend the Internal Revenue Code of 1954 to provide that the provisions which increase the Federal unemployment tax in States which have outstanding loans will not apply if the State makes certain repayments.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide that the credit against Federal unemployment tax liability available to an employer shall not be reduced due to advances made to the unemployment account of a State under Title XII (Advances to State Unemployment Funds) of the Social Security Act, if such State: (1) repays the advances and such repayments are equal to or greater than the total amount of additional tax which employers, subject to the unemployment compensation laws of such State, would pay if subject to a credit reduction; and (2) maintains sufficient amounts in its unemployment funds to pay all compensation during the six month period beginning on November 1 of the taxable year without receiving any advances under Title XII of the Social Security Act.…