Short-time compensation program

(a) Required program (1) In general Section 3304(a) of the Internal Revenue Code of 1986, as previously amended by this title, is amended— (A) in paragraph (4)(E), by inserting, as required under paragraph (32) after 3306(v)); (B) in paragraph (31), by striking and at the end; (C) by redesignating paragraph (32) as paragraph (33); and (D) by inserting after paragraph (31) the following new paragraph: (32) payment of short-time compensation is made under a short-time compensation program (as defined in section 3306(v)) under the State law; and. (2) Conforming amendment Section 303(a)(5) of the Social Security Act (42 U.S.C. 503(a)(5)), is amended, in the fifth proviso, by inserting, as required under section 3304(a)(32) of such Code after 1986). (b) Revisions to definition of a short-Time compensation program (1) Flexibility (A) In general Section 3306(v)(3) of the Internal Revenue Code of 1986 is amended by striking 60 percent and inserting 80 percent. (B) Effective date The amendment made by subparagraph (A) shall take effect on the date of enactment of this Act. (2) Permitting employers to file claim on behalf of employees Section 3306(v) of the Internal Revenue Code of 1986 is amended— (A) by redesignating paragraphs (8), (9), and (10) as paragraphs (9), (10), and (11), respectively; and (B) by inserting after paragraph (7) the following new paragraph: (8) the State agency allows an employer to file weekly claims under the program on behalf of employees;. (c) Effective date The amendments made by this section (other than subsection (b)(1)) shall apply to weeks of unemployment beginning on or after the earlier of— (1) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (2) January 1, 2027.