rp-17-36.pdf

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Rev. Proc. 2017-36

SECTION 1. PURPOSE

This revenue procedure provides indexing adjustments for certain provisions
under sections 36B and 5000A of the Internal Revenue Code. In particular, it updates
the Applicable Percentage Table in § 36B(b)(3)(A)(i) to provide the Applicable
Percentage Table for 2018. This table is used to calculate an individual’s premium tax
credit. This revenue procedure also updates the required contribution percentage in
§ 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2017. The percentage
is used to determine whether an individual is eligible for affordable employer-sponsored
minimum essential coverage under § 36B. This revenue procedure uses the
methodology described in Section 4 of Rev. Proc. 2014-37, 2014-2 C.B. 363, to index
the Applicable Percentage Table and the § 36B required contribution percentage for
2018. Additionally, this revenue procedure cross-references the required contribution
percentage under § 5000A(e)(1)(A) for plan years beginning after calendar year 2017,
as determined under guidance issued by the Department of Health and Human
Services. The percentage is used to determine whether an individual is eligible for an
exemption from the individual shared responsibility payment because of a lack of
affordable minimum essential coverage.

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SECTION 2. ADJUSTED ITEMS

.01 Applicable Percentage Table for 2018. For taxable years beginning in 2018,
the Applicable Percentage Table for purposes of § 36B(b)(3)(A)(i) and § 1.36B-3T(g) is:

Household income percentage of Federal
poverty line:
Initial percentage Final percentage
Less than 133% 2.01% 2.01%
At least 133% but less than 150% 3.02% 4.03%
At least 150% but less than 200% 4.03% 6.34%
At least 200% but less than 250% 6.34% 8.10%
At least 250% but less than 300% 8.10% 9.56%
At least 300% but not more than 400% 9.56% 9.56%

.02 Section 36B Required Contribution Percentage for 2018. For plan years
beginning in 2018, the required contribution percentage for purposes of
§ 36B(c)(2)(C)(i)(II) and § 1.36B-2T(c)(3)(v)(C) is 9.56%.
.03 Section 5000A Required Contribution Percentage. In the 2018 Benefit and
Payment Parameters, 81 Fed. Reg. 94058 (December 22, 2016), for plan years
beginning in 2018, the Department of Health and Human Services (HHS) announced
that the Section 5000A required contribution percentage for purposes of
§ 5000A(e)(1)(A) and § 1.5000A-3(e)(2) is 8.05%. See Exchange and Insurance
Market Standards for 2015 and beyond, 79 Fed. Reg. 30239, 30302 (May 27, 2014), for
further information on the computation methodology and publication approach for the
Section 5000A required contribution percentage.
SECTION 3. EFFECTIVE DATE

This revenue procedure is effective for taxable years and plan years beginning
after December 31, 2017.

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SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is Bill Ruane of the Office of
Associate Chief Counsel (Income Tax and Accounting). For further information
regarding this revenue procedure, contact Mr. Bill Ruane at (202) 317-4718 (not a toll-
free call).