Rev. Rul. 2021-12

This revenue ruling provides various prescribed rates for federal income

tax purposes for July 2021 (the current month). Table 1 contains the shortterm, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the

low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the blended annual rate for 2021 for purposes of section 7872.

REV. RUL. 2021-12 TABLE 1 Applicable Federal Rates (AFR) for July 2021

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 0.12% 0.12% 0.12% 0.12% 110% AFR 0.13% 0.13% 0.13% 0.13% 120% AFR 0.14% 0.14% 0.14% 0.14% 130% AFR 0.16% 0.16% 0.16% 0.16% Mid-term AFR 1.00% 1.00% 1.00% 1.00% 110% AFR 1.10% 1.10% 1.10% 1.10% 120% AFR 1.20% 1.20% 1.20% 1.20% 130% AFR 1.30% 1.30% 1.30% 1.30% 150% AFR 1.51% 1.50% 1.50% 1.50% 175% AFR 1.76% 1.75% 1.75% 1.74% Long-term AFR 2.07% 2.06% 2.05% 2.05% 110% AFR 2.28% 2.27% 2.26% 2.26% 120% AFR 2.49% 2.47% 2.46% 2.46% 130% AFR 2.70% 2.68% 2.67% 2.67%

REV. RUL. 2021-12 TABLE 2

Adjusted AFR for July 2021

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 0.09% 0.09% 0.09% 0.09% Mid-term adjusted AFR 0.76% 0.76% 0.76% 0.76% Long-term adjusted AFR 1.57% 1.56% 1.56% 1.55%

Bulletin No. 2021–27 1 July 6, 2021

REV. RUL. 2021-12 TABLE 3 Rates Under Section 382 for July 2021 Adjusted federal long-term rate for the current month 1.57% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal 1.64% long-term rates for the current month and the prior two months.)

REV. RUL. 2021-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2021 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit 7.35% Appropriate percentage for the 30% present value low-income housing credit 3.15%

REV. RUL. 2021-12 TABLE 5 Rate Under Section 7520 for July 2021 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest

1.2%

REV. RUL. 2021-12 TABLE 6

Blended Annual Rate for 2021 Section 7872(e)(2) blended annual rate for 2021 .13%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted applicable federal long-term rate is set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 467.—Certain Payments for the Use of Property or Services

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The applicable federal short-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 482.—Allocation of Income and Deductions Among Taxpayers

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 483.—Interest on Certain Deferred Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

Section 7872.—Treatment of Loans With Below- Market Interest Rates

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2021. See Rev. Rul. 2021-12, page 1.

July 6, 2021 2 Bulletin No. 2021–27