H.R. 1959 — To amend the Internal Revenue Code of 1986 to protect small businesses from unemployment insurance premium increases by reason of unrepaid State advances.

This section exempts specified small businesses—taxpayers employing fewer than 500 employees as of the close of the third quarter of the calendar year immediately preceding the second consecutive January 1 triggering a FUTA tax credit reduction under IRC §3302(c)(2)—from that credit reduction applicable when a state has unrepaid federal advances to its unemployment fund. (Thus, such small businesses retain their full credit of up to 5.4% of taxable wages against the 6.0% FUTA tax rate.)