(a) Application. (1) The Governor of the State shall make
application, addressed to the Secretary of Labor, no later than July 1
of a taxable year with respect to which a State requests a cap on tax
credit reduction. The Governor is required to notify the Department on
or before October 15 of such taxable year of any action occurring after
the date of the initial application and effective prior to October 1 of
such year that would impact upon the State's application.
(2) The UIS Director will make a determination on the application on
or before November 10 of such taxable year, will notify the applicant
and the Secretary of the Treasury of such determination, and will cause
notice of such determination to be published in the Federal Register.
(b) Anticipated impact statement. In support of the application by
the Governor, there shall be submitted with the application (on or
before October 15), for the purposes of the criteria described in
Secs. 606.20(a) (1) and (2) and 606.21 (a) and (b), a description of all
statutory provisions enacted or amended, regulations adopted or revised,
administrative policies and procedures adopted or revised, and judicial
decisions given effect, which are effective during the 12-month period
ending on September 30 of the taxable year for which a cap on tax credit
reduction is requested, and an anticipated impact statement (AIS) for
each such program action in the following respect--
(1) The estimated dollar effect on each program action upon
expenditures for compensation from the State unemployment fund and for
the amounts of contributions paid or payable in such 12-month period,
including the effect of interaction among program actions, and with
respect to program actions for which dollar impact cannot be estimated
or is minor or negligible, indicate whether the impact is positive or
negative;
(2) If a program action has no such dollar effect, an explanation of
why there is or will be no such effect;
(3) A description of assumptions and methodology used and the basis
for the financial estimate of the impact of each program action
described in paragraphs (b)(1) and (b)(2) of this section; and
(4) A comparision of the program actions described in paragraphs
(b)(1) and (b)(2) of this section with the program actions prior to the
Federal fiscal year (as defined in Sec. 606.3(f)) which ends on such
September 30.
(c) Unemployment tax rate. With respect to the unemployment tax rate
criterion described in Secs. 606.20(a)(3) and 606.21(c), the application
shall include an estimate for the taxable year with respect to which a
cap on tax credit reduction is requested and actual data for the prior
two years as follows:
(1) The amount of taxable wages as defined in Sec. 606.3(k);
(2) The amount of total wages as defined in Sec. 606.3(l); and
(3) The estimated distribution of taxable wages, as defined in
Sec. 606.3(k), by tax rate under the State law.
(d) Benefit cost ratio. With respect to the benefit cost ratio
criterion described in Secs. 606.20(a)(3) and 606.21(d), the application
shall include for each of the five calendar years prior to the taxable
year for which a cap on tax
credit reduction is requested, the following data:
(1) The total dollar sum of compensation actually paid under the
State law during the calendar year, including in such total sum all
regular, additional, and extended compensation as defined in section 205
of the Federal-State Extended Unemployment Compensation Act of 1970, but
excluding from such total sum--
(i) The total dollar amount of such compensation paid for which the
State is entitled to reimbursement or was reimbursed under the
provisions of any Federal law;
(ii) The total dollar amount of such compensation paid which is
attributable to services performed for a reimbursing employer, and which
is not included in the total amount reported under paragraph (d)(1)(i)
of this section;
(2) The total dollar amount of interest paid during the calendar
year on any advance; and
(3) The total dollar amount of wages (as defined in Sec. 606.3(l))
with respect to such calendar year.
(e) Documentation required. Copies of the sources of or authority
for each program action described in paragraph (b) of this section shall
be submitted with each application for a cap on tax credit reduction. In
addition, a notation shall be made on each AIS of where all figures
referred to are contained in reports required by the Department or in
other data sources.
(f) State contact person. The Department may request additional
information or clarification of information submitted bearing upon an
application for a cap on tax credit reduction. To expedite requests for
such information, the name and telephone number of an appropriate State
official shall be included in the application by the Governor.
