rp-21-36.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part III

Administrative, Procedural, and Miscellaneous

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. 2021-36

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 2022. 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 2022. This percentage
is used to determine whether an individual is eligible for affordable employer-sponsored
minimum essential coverage.

- 2 -

SECTION 2. ADJUSTED ITEMS

.01 Applicable Percentage Table for 2022. Section 9661 of the American Rescue
Plan Act of 2021, Pub. L. No. 117-2 (ARP), 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. For taxable years beginning in calendar year 2022, the
Applicable Percentage Table for purposes of § 36B(b)(3)(A) and § 1.36B-3(g) of the
Income Tax Regulations is:
Household income percentage of Federal
poverty line:
Initial percentage Final percentage
Less than 150% 0.00% 0.00%
At least 150% but less than 200% 0.00% 2.00%
At least 200% but less than 250% 2.00% 4.00%
At least 250% but less than 300% 4.00% 6.00%
At least 300% but less than 400% 6.00% 8.50%
At least 400% and higher 8.50% 8.50%

.02 Required Contribution Percentage for 2022.
(1) Section 9661 of the ARP did not amend the indexing rules under
§ 36B(c)(2)(C)(iv) relating to the Required Contribution Percentage. See
§ 36B(b)(3)(A)(iii)(I). The Required Contribution Percentage for plan years beginning in
calendar year 2022 is indexed based on the rates of premium growth relative to the
rates of income growth in the Department of Health and Human Services (HHS) Notice
of Benefit and Payment Parameters for 2022 and Pharmacy Benefit Manager Standards
(86 F. R. 24140; May 5, 2021). In addition, the additional adjustment provided in
§ 36B(b)(3)(A)(ii)(II) is not required for plan years beginning in 2022 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 2022.

- 3 -

(2) For plan years beginning in calendar year 2022, the Required Contribution
Percentage for purposes of § 36B(c)(2)(C)(i)(II) and § 1.36B-2(c)(3)(v)(C) is 9.61%.
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 2022.
SECTION 5. 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. Ruane at (202) 317-4718 (not a toll-free
call).