Revenue Procedure 2023-29
Internal Revenue Service
2023-37 I.R.B. 819
     
     
     
 26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability.      
 (Also Part 1,§§ 36B, 1.36B-2, 1.36B-3.)      
     
 Rev. Proc. 2023-29      
     
 SECTION 1. PURPOSE      
     
This revenue procedure provides the applicable percentage table (Applicable Percentage Table) in§    36B(b)(3)(A) of the Internal Revenue Code (Code) for taxable years beginning in calendar year 2024.  1   This table is used to calculate an individual's premium tax credit under§ 36B. This revenue procedure also provides the indexing adjustment for the required contribution percentage (Required Contribution Percentage) in§ 36B(c)(2)(C)(i)(II) for plan years beginning in calendar year 2024. This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under§ 36B.   
     
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1    Section 9661 of the American Rescue Plan Act of 2021, Public Law 117-2, 135 Stat. 4, 182 (2021) (ARPA), added§ 36B(b)(3)(A)(iii) to the Code to provide an Applicable Percentage Table that applies for taxable years beginning in calendar years 2021 and 2022. Section 12001(a) of the Inflation Reduction Act of 2022, Public Law 117-169, 136 Stat. 1818, 1905 (2022) (IRA) extended to taxable years beginning in calendar years 2023-2025 the Applicable Percentage Table enacted by the ARPA. Section 36B(b)(3)(A)(iii) also suspends indexing of the Applicable Percentage Table for taxable years 2021-2025.   
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 SECTION 2. ADJUSTED ITEMS.01 Applicable Percentage Table for 2024. For taxable years beginning in calendar year 2024, the Applicable Percentage Table for purposes of§ 36B(b)(3)(A) and§ 1.36B-3(g) of the Income Tax Regulations is:.02 Required Contribution Percentage for 2024.
   
(1) Section 9661 of the ARPA and§ 12001(a) of the IRA did not amend the rules under§ 36B(c)(2)(C)(iv) relating to the Required Contribution Percentage, including the rules relating to the indexing of the Required Contribution Percentage. See§ 36B(b)(3)(A)(iii)(I). The Required Contribution Percentage for plan years beginning in calendar year 2024 is indexed based on the rates of premium growth relative to the rates of income growth in guidance issued by the Department of Health and Human Services (HHS). 2  In addition, the additional adjustment provided in§ 36B(b)(3)(A)(ii)(II) is not required for plan years beginning in 2024 because the Department of the Treasury and the Internal Revenue Service have determined that the failsafe exception described in§ 36B(b)(3)(A)(ii)(III) applies for plan years beginning in calendar year 2024.
   
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 2       The rate of premium growth and the rate of income growth for calendar year 2024 are calculated using the NHEA Projections, 2021-2030, available at: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected, which reflect the most recent projections, and the methodology used to calculate the same rates of growth in the Premium Adjustment Percentage guidance for the 2024 benefit year published by the Center for Medicare and Medicaid Services on December 12, 2022, available at: https://www.cms.gov/files/document/2024-papi-parameters-guidance-2022-12-12.pdf.   
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(2) For plan years beginning in calendar year 2024, the Required Contribution Percentage for purposes of§ 36B(c)(2)(C)(i)(II) and§ 1.36B-2(c)(3)(v)(C) is 8.39%.
   
SECTION 3. EFFECT ON OTHER DOCUMENTS 
   
Rev.Proc. 2014-37, 2014-2 C.B. 363, is supplemented.
   
SECTION 4. EFFECTIVE DATE 
   
This revenue procedure is effective for taxable years and plan years beginning in calendar year 2024.
   
SECTION 5. DRAFTING INFORMATION 
   
The principal author of this revenue procedure is Clara L. Raymond of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Ms. Raymond at (202) 317-4718 (not a toll-free number).