STATE AGENCY APPROVAL.

SEC. 301. STATE AGENCY APPROVAL. Section 314(f) of the Act (29 U.S.C. 1661c(f)) is amended— (1) by inserting “(1)” before “Funds”; and (2) by adding at the end the following new paragraph: “(2) An eligible dislocated worker participating in training (except for on-the-job training) under this title shall be deemed to be in training with the approval of the State agency for purposes of section 3304(a)(8) of the Internal Revenue Code of 1986.”.