A bill to amend the Federal-State Extended Unemployment Compensation Act of 1970 with respect to the conditions under which extended compensation is payable in any State.

Provides that, for any week beginning after enactment of this Act and before January 1, 1983, the Federal-State Extended Unemployment Compensation Act shall be applied as if the State trigger were based solely on a State insured unemployment rate of five percent for that week and the immediately preceding 12 weeks (waiving the 120 percent factor).

Waives the required 13-week period between extended benefit periods if the prior extended benefit period closed before the date of enactment of this Act.

Amends the Omnibus Budget Reconciliation Act of 1981 to delay from September 25, 1982, to March 31, 1983, the effective date of amendments increasing the State insured unemployment rate required to trigger extended unemployment compensation payments.

Permits States to pay extended benefits on the basis of area triggers.

Amends the Internal Revenue Code to decrease the income level, in the case of an individual or a joint return, above which unemployment compensation becomes includible in gross income.