This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2012-25 obsoleted in part.

This announcement corrects final regulations (TD 9612) that were published in the Federal Register on February 5, 2013 (78 FR 7997), relating to the tax treatment of noncompensatory options and convertible instruments issued by a partnership. The final regulations generally provide that the exercise of a noncompensatory option does not cause the recognition of immediate income or loss by either the issuing partnership or the option holder. The final regulations also modify the regulations under section 704(b) regarding the maintenance of the partners’ capital accounts and the determination of the partners’ distributive shares of partnership items. The final regulations also contain a characterization rule providing that the holder of a noncompensatory option is treated as a partner under certain circumstances.

These final regulations govern nondiscriminatory wellness programs in group health coverage consistent with the Affordable Care Act. They increase the maximum reward under a health-contingent wellness program from 20 percent to 30 percent of the cost of coverage and increase the maximum reward to 50 percent for a wellness program designed to prevent or reduce tobacco use. These regulations also include clarifications related to the reasonable design of health-contingent wellness programs and reasonable alternatives that must be offered to avoid prohibited discrimination.

These final regulations govern nondiscriminatory wellness programs in group health coverage consistent with the Affordable Care Act. They increase the maximum reward under a health-contingent wellness program from 20 percent to 30 percent of the cost of coverage and increase the maximum reward to 50 percent for a wellness program designed to prevent or reduce tobacco use. These regulations also include clarifications related to the reasonable design of health-contingent wellness programs and reasonable alternatives that must be offered to avoid prohibited discrimination.

This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2012-25 obsoleted in part.