Base period

(a) In general Section 3304(a) of the Internal Revenue Code of 1986, as previously amended by this title, is amended— (1) in paragraph (24), by striking and at the end; (2) by redesignating paragraph (25) as paragraph (27); and (3) by inserting after paragraph (24) the following new paragraphs: (25) the State law— (A) uses a base period that consists of 4 completed calendar quarters preceding the effective date of the claim and includes the most recently completed calendar quarter before the start of the benefit year for purposes of determining eligibility for unemployment compensation; or (B) provides that, in the case of an individual who would not otherwise be eligible for unemployment compensation under the State law because of the use of a base period that does not meet the requirements described in subparagraph (A), eligibility is determined using a base period that consists of 4 completed calendar quarters preceding the effective date of the claim and includes the most recently completed calendar quarter before the start of the benefit year; (26) in the case of an individual who would not otherwise be eligible for unemployment compensation under State law because the individual took unpaid leave or reduced pay for medical, parental, or caregiving purposes during the base period, or because the individual was incapable of work due to illness, injury, or disability during the base period, eligibility shall be determined using a base period that includes the State’s standard or alternative base period and at least 4 additional consecutive quarters immediately before the base period or alternative base period; and. (b) Effective date The amendments made by subsection (a) shall apply to claims with an effective date 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.