President Signs Tax Compromise, Includes UI Extension and Modification

On December 17, 2010, the president signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312). In addition to addressing several expiring tax code provisions, the act extends federal unemployment insurance (UI) benefits for 13 months. Specifically, it extends the Emergency Unemployment Compensation (EUC) program, as well as full federal financing of EUC and the Extended Benefits (EB) program. It also lengthens the look-back provision of the EB program, which will help states remain eligible for the program.

The law does not extend the provision that temporarily waives the accrual of interest and interest payments due on any advances from the Federal Unemployment Account used to pay UI benefits. This waiver was included as a part of the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) and expires on December 31, 2010.