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

Protect small businesses from reductions to an unemployment-related small business tax credit. This bill would amend Section 3302(c) of the Internal Revenue Code to prevent the reduction of the applicable small business credit when reductions would otherwise result from unrepaid state unemployment insurance advances. It covers "specified small businesses," defined as taxpayers with fewer than 500 employees measured at the close of the third quarter tied to the statute's timing rule. The protection would apply to taxable years beginning after enactment.