SECTION 7. APPLICATIONS FOR

RECOGNITION OF EXEMPTION

The IRS intends to publish a revenue procedure describing how an organization may apply for recognition of exempt status as an organization described in § 501(c)(29). Until the revenue procedure is published, the IRS will not accept applications. The revenue procedure will provide that a Qualified Issuer may not submit its request for recognition of exemption under § 501(c)(29) until it has entered into an agreement with HHS under § 1322(b)(2)(C) of the Affordable Care Act.

The revenue procedure also will address the effective date of a Qualified Issuer’s tax exemption. The Treasury Department and the IRS intend to recognize a Qualified Issuer that has received a loan or grant under the CO-OP program as exempt effective from the later of the date of its formation or March 23, 2010, provided that the Qualified Issuer’s purposes and activities have been consistent with the requirements for exemption since that date. To be recognized as exempt from the date of its formation, a Qualified Issuer must have complied with the conditions of exemption described in clauses (ii)-(iv) of § 501(c)(29)(B).