Unemployment Compensation Improvement Act of 2007 - Amends Title III (Grants to States for Unemployment Compensation Administration) of the Social Security Act (SSA) to authorize the Secretary of Labor to enter into agreements with applicant states to allow them to conduct two-year demonstration projects to test and evaluate measures designed to: (1) expedite, such as through the use of a wage insurance program, the reemployment of individuals who establish initial eligibility for unemployment compensation under state law; or (2) improve the state's effectiveness in carrying out such law.
Allow the Secretary to waive certain requirements of the Internal Revenue Code and the SSA concerning state law to enable the state to carry out a demonstration project.