Bill > HR1959

This bill amends the Internal Revenue Code of 1986 to protect small businesses from experiencing increased unemployment insurance premiums due to unrepaid state advances. Specifically, the bill prevents small businesses (defined as those employing fewer than 500 employees at the end of the third quarter of the previous calendar year) from having their tax credits reduced when a state has not fully repaid its unemployment insurance advances to the federal government. Under current law, businesses in states with outstanding unemployment insurance loans can face higher federal unemployment taxes, but this bill creates an exception for small businesses, ensuring they will not be penalized for state-level financial challenges. The amendment will apply to taxable years beginning after the date of the bill's enactment, providing immediate relief for small businesses that might otherwise face increased tax burdens due to state-level unemployment insurance loan repayment issues.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1959/all-info