Bill Details
Status
Latest action
2025-03-06 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-03-06
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
8
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change federal tax rules so that smaller businesses are not hit with higher unemployment insurance taxes when a state has borrowed money from the federal government and still has not paid it back. In simple terms, it aims to protect many small employers from extra tax costs that can happen because of a state’s unpaid unemployment insurance debt. The bill says that certain small businesses would not lose a tax credit just because their state has these unpaid advances. The change would take effect for tax years starting after the bill becomes law.
- It changes the tax code rule that can reduce unemployment insurance tax credits when a state still owes money it borrowed for unemployment benefits.
- The protection applies to “specified small businesses,” meaning taxpayers that employ fewer than 500 workers.
- To qualify, the business must meet the employee-count test based on the third quarter of the year before the tax rule would otherwise apply.
- The new rule would apply to taxable years beginning after the bill becomes law.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1959 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1959
To amend the Internal Revenue Code of 1986 to protect small businesses
from unemployment insurance premium increases by reason of unrepaid
State advances.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2025
Ms. Tenney (for herself and Mr. Smucker) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to protect small businesses
from unemployment insurance premium increases by reason of unrepaid
State advances.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PROTECTION OF SMALL BUSINESS FROM UNEMPLOYMENT INSURANCE
PREMIUM INCREASES BY REASON OF UNREPAID STATE ADVANCES.
(a) In General.--Section 3302(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Credits of Small Businesses Not Reduced by Reason of Unrepaid
Advances.--
``(A) In general.--Paragraph (2) shall not apply with
respect to any specified small business.
``(B) Specified small business.--For purposes of this
paragraph, the term `specified small business' means any
taxpayer if such taxpayer employs fewer than 500 employees as
of the close of the third quarter of the calendar year
immediately preceding the second consecutive January 1 referred
to in paragraph (2)(A)(i).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
<all>