PUBLIC LAW 98-21—APR. 20, 1983 97 STAT, 145 unemployment system (as determined for purposes of section 3302(0 of the Internal Revenue Code of 1954); and 26 USC 3302. "(iiXD have taken an action (as certified by the Secretary of Labor) after March 31, 1982, which would have increased reve- nue liabilities and decreased benefits under the State's unem- ployment compensation system (hereinafter referred to as a 'solvency effort') by a combined total of the applicable percent- age (as compared to such revenues and benefits as would have been in effect without such State action) for the calendar year for which the deferral is requested; or "(II) have had, for taxable year 1982, an average unemploy- ment tax rate which was equal to or greater than 2.0 percent of the total of the wages (as determined without any limitation on amount) attributable to such State subject to contribution under the State unemployment compensation law with respect to such taxable year. In the case of the first year for which there is a deferral (over a 4- year period) of the interest otherwise payable for such year, the applicable percentage shall be 25 percent. In the case of the second such year, the applicable percentage shall be 35 percent. In the case of the third such year, the applicable percent^e shall be 50 percent. "(C)(i) The base year is the first year for which deferral under this provision is requested and subsequently granted. The Secretary of Labor shall estimate the unemployment rate for the base year. To determine whether a State meets the requirements of subparagraph (B)(ii)(I), the Secretary of Labor shall determine the percentage by which the benefits and taxes in the base year with the application of the action referred to in subparagraph (B)(iiXD are lower or greater, as the case may be, than such benefits* and taxes would have been without the application of such action. In making this determina- tion, the Secretary shall deem the application of the action referred to in subparagraph (B)(iiXD to have been effective for the base year to the same extent as such action is effective for the year following the year for which the deferral is sought. Once a deferral is ap- proved under clause (iiXD of subparagraph (B) a State must continue to maintain its solvency effort. Failure to do so shall result in the State being required to make immediate payment of all deferred interest. "(ii) Increases in the taxable wage base from $6,000 to $7,000 or increases after 1984 in the maximum tax rate to 5.4 percent shall not be counted for purposes of meeting the requirement of subpara- graph (B). "(D) In the case of a State which produces a solvency effort of 50 percent, 80 percent, and 90 percent rather than the 25 percent, 35 percent, and 50 percent required under subparagraph (B), the inter- est shall be computed at an interest rate which is 1 percentage point less than the otherwise applicable interest rate. "(9) Any interest otherwise due from a State on September 30 of a calendar year after 1982 may be deferred (and no interest shall accrue on such deferred interest) for a grace period of not to exceed 9 months if, for the most recent 12-month period for which data are available before the date such interest is otherwise due, the State had an average total unemployment rate of 13.5 percent or greater." (b) Section 1202(b)(7) of such Act is amended by striking out ", and 42 USC 1322. before January 1, 1988".
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