Content Last Revised: 9/26/88 ---DISCLAIMER---

CFR	Code of Federal Regulations Pertaining to ETA

Title 20

Employees' Benefits

Chapter V

Employment and Training Administration, Department of Labor

Part 606

Tax Credits Under the Federal Unemployment Tax Act; Advances Under Title XII of the Social Security Act

Subpart C

Relief from Tax Credit Reduction

• Section Number: 606.25
• Section Name: Waiver of and substitution for additional tax credit reduction.

    A provision of subsection (c)(2) of section 3302 of FUTA provides 

that, for a State that qualifies, the additional tax credit reduction 

applicable under subparagraph (C), beginning in the fifth consecutive 

year of a balance of outstanding advances, shall be waived and the 

additional tax credit reduction applicable under subparagraph (B) shall 

be substituted. The waiver and substitution are granted if the UIS 

Director determines that the State has taken no action, effective during 

the 12-month period ending on September 30 of the year for which the 

waiver and substitution are requested, which has resulted or will result 

in a net decrease in the solvency of the State unemployment compensation 

system as determined for the purposes of Secs. 606.20(a)(2) and 

606.21(b).