Part-time work

(a) In general Section 3304(a) of the Internal Revenue Code of 1986, as previously amended by this title, is amended— (1) in paragraph (21), by striking and at the end; (2) by redesignating paragraph (22) as paragraph (25); and (3) by inserting after paragraph (21) the following new paragraphs: (22) an individual is not denied unemployment compensation under any State law provisions relating to ability to work, availability for work, active search for work, or refusal to accept work, solely on the basis of the number of hours of work such individual is seeking, provided that the individual is seeking at least the lesser of— (A) 20 hours of work per week; or (B) a number of hours of work per week equal to at least 1/2 of the typical number of hours worked per week in the individual’s base period; (23) an unemployed individual may claim benefits for a week of partial unemployment where the individual performs less than full-time work while continuing to search for additional part-time or full-time work in accordance with State law if their earnings are less than the individual’s weekly benefit amount; (24) when determining the weekly benefit amount for an individual claiming a benefit for a week of partial unemployment, the State disregards, at a minimum, earnings equal to 1/3 of the individual’s weekly benefit amount in computing the individual’s weekly benefit for partial unemployment; and. (b) Effective date The amendments made by subsection (a) 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.