To amend the Internal Revenue Code of 1986 to protect small businesses from unemployment insurance premium increases by reason of unrepaid State advances.

Summary

Prevents a statutory reduction in the Unemployment Trust Fund tax credit for employers that qualify as a "specified small business." A specified small business is any taxpayer that employed fewer than 500 employees as of the close of the third quarter of the calendar year immediately before the relevant January 1 used in current law. The change preserves the employer's Unemployment Trust Fund credit for taxable years beginning after enactment. The amendment modifies the tax code definition and credit application only for qualifying employers, does not create new spending programs, and takes effect for taxable years beginning after the bill becomes law.

• Prevents a statutory reduction of the Unemployment Trust Fund tax credit for qualifying small employers.
• Defines "specified small business" as employers with fewer than 500 employees measured at a specific third-quarter date.
• Applies to taxable years beginning after the legislation is enacted.
• Preserves credit amounts for eligible employers, lowering their FUTA-related tax burden relative to current law.
• Requires IRS/Treasury to update tax guidance, forms, and instructions to reflect the change.
• Does not create new spending or appropriate funds; it modifies tax treatment only.
• Scope limited to taxpayers meeting the employee-count test; large employers unaffected.