Sponsors (2)
The bill preserves tax credits and cash flow for small employers but does so by shifting some UI program costs onto larger taxpayers and modestly reducing federal receipts.
Small employers (businesses with under 500 employees) keep full UI-related tax credits and avoid retroactive reductions tied to unrepaid advances, preserving their cash flow and lowering their near-term tax liability.
Larger employers and other taxpayers may face a relatively larger share of unemployment insurance program costs because small firms' credits aren't reduced, shifting the distribution of the tax burden.
Federal receipts to the Treasury/IRS could be modestly reduced compared with current law, potentially increasing budgetary costs or requiring offsets.
Based on analysis of 2 sections of legislative text.
Prevents certain reductions of unemployment-insurance–related tax credits for businesses that employed fewer than 500 people at a specified prior quarter. The change amends the Internal Revenue Code to protect those "specified small businesses" from having their UI credit reduced under the existing rule, and it applies to taxable years beginning after the date of enactment.
Introduced March 6, 2025 by Claudia Tenney · Last progress March 6, 2025