A bill to amend the Internal Revenue Code of 1954 to provide that the provisions which increase the Federal unemployment tax in States with outstanding Federal loans will not apply to States with high rates of unemployment and large outstanding loan balances and to provide that such States will not be required to pay interest on such loans.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide that the credit against employment tax liability available to an employer shall not be reduced due to any unpaid balance of loans made to the unemployment account of a State in which: (1) the unemployment rate for a specified period is seven percent or more; and (2) the balance of loans made to the unemployment account is at least $1,000,000,000. Amends title XII (Advances to State Unemployment Funds) of the Social Security Act to provide that States with such unemployment rates and loan balances shall not be required to pay interest on such loans.…