An eligible dislocated worker who is participating in any retraining
activity, except on-the-job training, under Title III of the Act or this
part 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. Participation in the approved training shall not disqualify the
individual from receipt of unemployment benefits to which the individual
is otherwise entitled (section 314(f)(2)).