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SECTION 5. DRAFTING INFORMATION

SECTION 1. PURPOSE This revenue procedure sets forth inflation-adjusted items for 2014. SECTION 2. CHANGES .01 Section 1421(a) of the Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148, 124 Stat. 119 (PPACA), added § 45R to the Internal Revenue Code. Section 45R provides a Federal income tax credit to certain small employers that make nonelective contributions toward their employees’ health insurance premiums. The maximum credit is a percentage of the premiums that the employer paid during the tax year for certain health insurance coverage that the employer provided to certain employees. Under § 45R(c) the maximum credit is phased out based on the employer's number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of the dollar amount in effect under § 45R(d)(3)(B). For a taxable year beginning after 2013, an inflation adjustment applies to the dollar amount in § 45R(d)(3)(B), which is used under § 45R(c) as described above and under § 45R(d)(1)(B) in determining who is an eligible small employer for purposes of qualifying for this credit. .02 Section 9005 of the PPACA amended § 125 to provide limitations on Health Flexible Spending Arrangements. Section 10902 of the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029, amended section 9005 and § 125 to provide that the dollar limitation under § 125(i) on voluntary employee