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 repays during the one-year period ending on November 9 of the taxable year the advances made to its unemployment account and such repayments are not less than the sum of the State's potential additional taxes for the taxable year, plus any advances made to such State during the one-year period. Denies any suspension of credit reduction to any State which has changed its tax and benefit structure so as to reduce the solvency of its unemployment compensation system. Allows renewal of a suspension of credit reduction if a State repays at least one-half of the amount of advances required to be repaid during the year of the suspension. Suspends such credit reduction penalty with respect to any State which pays extended benefits for at least six months under the Federal-State Extended Unemployment Compensation Act of 1970. Empowers the Secretary of Labor to require a State to furnish any…