A bill to provide that no interest shall be charged on loans to State unemployment funds in the case of States which enact certain State unemployment compensation provisions, and to revise the criteria applicable to the cap on FUTA tax credit reductions.

[AI summary unavailable — showing source text] Exempts a State from interest charges assessed on advances from the Federal Unemployment Account if the State enacts legislation that increases its unemployment tax revenues by 20 percent after March 31, 1982, but before April 1, 1984 (40 percent on or after April 1, 1984), and decreases its benefit expenditures by five percent (ten percent after April 1, 1984) if its average weekly benefits exceeds the national average. Eliminates the requirement that the State's outstanding Federal Unemployment Account balance not exceed that of the third preceding year. Provides that the State's unemployment tax rate must equal or exceed its benefit-cost ratio for the last calendar year ending before the taxable year.…