A bill to amend the Internal Revenue Code of 1954 to make certain changes in the provisions which increase the Federal unemployment tax in States which have outstanding Federal loans.

Amends the Internal Revenue Code to provide that the credit against Federal unemployment tax liability available to an employer shall not be reduced due to advances made to the unemployment account of a State under title XII (Advances to State Unemployment Funds) of the Social Security Act, if such State repays during a one-year period ending on November 9 the advances made to its account and such repayments are not less than the sum of the State's potential additional taxes for the taxable year, plus any advances made to such State during such one-year period. Empowers the Secretary of Labor to require a State to furnish any information necessary to determine if such State has made proper repayments.

Permits States which borrow Federal funds for payment of unemployment benefits to qualify for a cap on any increase in employer tax liability due to the failure of such State to repay outstanding loans, if such State meets certain minimum solvency requirements with respect to its unemployment compensation system. Authorizes the Secretary of Labor to disqualify a State for such cap if the State has not provided adequate information with respect to the solvency of its unemployment compensation system.

Permits States which have current loan balances for unemployment compensation benefits to waive certain repayment requirements during periods of high unemployment.