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Bill

HR 1959

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

119th Congress Introduced by Lloyd Smucker and 1 co-sponsor

HR 1959 protects small businesses from rising unemployment insurance costs due to unpaid state advances, supporting their stability and job retention during downturns.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 1959

Summary of HR 1959: Unemployment Insurance Protection for Small Businesses

Bill Overview

Bill Number: HR 1959
Title: To amend the Internal Revenue Code of 1986 to protect small businesses from unemployment insurance premium increases by reason of unrepaid State advances.
Status: Introduced in House
Introduced Date: March 06, 2025
Classification: Bill

Purpose and Intent

The primary purpose of HR 1959 is to amend the Internal Revenue Code to provide financial relief to small businesses by preventing increases in unemployment insurance premiums that may result from unrepaid state advances. This legislation aims to support small businesses, particularly during economic downturns, by ensuring that they are not penalized with higher costs due to state-level financial challenges.

Key Provisions

  • Amendment to Section 3302(c): The bill proposes an amendment to Section 3302(c) of the Internal Revenue Code of 1986, specifically adding a new paragraph (4).
    • Exemption for Small Businesses:
    • Paragraph (4)(A): States that the provisions of paragraph (2) shall not apply to any "specified small business."
    • Definition of Specified Small Business:
      • Paragraph (4)(B): A specified small business is defined as any taxpayer that employs fewer than 500 employees as of the close of the third quarter of the calendar year immediately preceding the second consecutive January 1 referenced in paragraph (2)(A)(i).
  • Effective Date: The changes made by this amendment will apply to taxable years beginning after the enactment of this Act.

Impact

  • Who is Affected: This bill primarily affects small businesses with fewer than 500 employees. By exempting these businesses from certain unemployment insurance premium increases, the legislation aims to alleviate financial burdens during times when state unemployment funds may be depleted.
  • Potential Benefits: The bill is designed to help small businesses maintain their financial stability, potentially leading to job retention and economic growth, especially in challenging economic conditions.

Legislative Actions

  • March 06, 2025: The bill was introduced in the House and referred to the House Committee on Ways and Means for further consideration.

Sponsors

  • Primary Sponsor: Claudia Tenney
  • Cosponsor: Lloyd Smucker

This summary provides a clear understanding of HR 1959, its intent to protect small businesses from increased unemployment insurance costs, and the specific provisions that would be enacted if the bill is passed.

Compiled from official sources — confirm details with the bill’s official record.

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