Apply ordered aggregate capping to state nonrefundable credits

changelog.d/audit-state-nonrefundable-credit-order.fixed.md

@@ -0,0 +1 @@
+Fix state nonrefundable income tax credits to apply in statutory filing order, with state-specific regression coverage for capped credit sequencing.

policyengine_us/parameters/gov/states/ga/tax/income/credits/non_refundable.yaml

@@ -1,5 +1,8 @@
 description: Georgia provides these non-refundable income tax credits.
 values:
+  2007-01-01:
+    - ga_cdcc
+    - ga_low_income_credit
   2021-01-01:
     - ga_cdcc
     - ga_low_income_credit

policyengine_us/parameters/gov/states/il/tax/income/credits/non_refundable.yaml

@@ -1,8 +1,8 @@
 description: Illinois provides the following non-refundable credits.
 values:
   2021-01-01:
-    - il_k12_education_expense_credit
     - il_property_tax_credit
+    - il_k12_education_expense_credit
 metadata:
   unit: list
   period: year

policyengine_us/parameters/gov/states/ky/tax/income/credits/non_refundable.yaml

@@ -5,7 +5,7 @@ metadata:
   period: year
 values:
   2021-01-01:
+    - ky_personal_tax_credits
     - ky_family_size_tax_credit
     - ky_tuition_tax_credit
-    - ky_personal_tax_credits
     - ky_cdcc

policyengine_us/parameters/gov/states/la/tax/income/credits/non_refundable.yaml

@@ -1,5 +1,7 @@
 description: Louisiana provides the following non-refundable tax credits.
 values:
+  2006-01-01:
+    - la_non_refundable_cdcc
   2021-01-01: 
     - la_non_refundable_cdcc
 metadata:

policyengine_us/parameters/gov/states/ny/tax/income/credits/non_refundable.yaml

@@ -1,8 +1,14 @@
 description: New York provides the following non-refundable tax credits.
 values:
+  2007-01-01:
+    - ny_household_credit
+    - ny_solar_energy_systems_equipment_credit
   2019-01-01:
     - ny_household_credit
     - ny_solar_energy_systems_equipment_credit
+  2022-01-01:
+    - ny_household_credit
+    - ny_solar_energy_systems_equipment_credit
     - ny_geothermal_energy_system_credit
 metadata:
   unit: list

policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc.yaml

@@ -3,13 +3,14 @@
   input:
     cdcc: 0
     state_code: AR
-  output: 
+    ar_income_tax_before_non_refundable_credits_unit: 1000000
+  output:
     ar_cdcc: 0
-
 - name: Some cdcc, 20%
   period: 2022
   input:
-    cdcc: 1_000
+    cdcc: 1000
     state_code: AR
-  output: 
+    ar_income_tax_before_non_refundable_credits_unit: 1000000
+  output:
     ar_cdcc: 200

policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_non_refundable_credit_order.yaml

@@ -0,0 +1,12 @@
+- name: Applied non-refundable credits follow filing order
+  period: 2024
+  input:
+    state_code: AR
+    ar_income_tax_before_non_refundable_credits_unit: 100
+    ar_personal_credits_potential: 80
+    ar_cdcc_potential: 40
+    ar_additional_tax_credit_for_qualified_individuals_potential: 30
+  output:
+    ar_personal_credits: 80
+    ar_cdcc: 20
+    ar_additional_tax_credit_for_qualified_individuals: 0

policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit.yaml

@@ -5,131 +5,116 @@
     filing_status: JOINT
     az_family_tax_credit_eligible: true
     tax_unit_size: 7
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 240
-
 - name: Family tax credits for single filers without dependents ($9000 income)
   period: 2023
   input:
     state_code: AZ
     filing_status: SINGLE
     az_family_tax_credit_eligible: true
     tax_unit_size: 1
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 40
-
 - name: Family tax credits for separate couple with 2 dependents ($11000 income)
   period: 2023
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_family_tax_credit_eligible: false
     tax_unit_size: 4
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 0
-
 - name: Family tax credits for head of household with 5 dependents ($26000 income)
   period: 2023
   input:
     state_code: AZ
     filing_status: HEAD_OF_HOUSEHOLD
     az_family_tax_credit_eligible: true
     tax_unit_size: 6
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 240
-
 - name: Family tax credits for surviving spouse with 3 dependents ($23000 income)
   period: 2023
   input:
     state_code: AZ
     filing_status: SURVIVING_SPOUSE
     az_family_tax_credit_eligible: true
     tax_unit_size: 4
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 160
-
 - name: Family tax credits for head of household with 5 dependents (no income)
   period: 2023
   input:
     state_code: AZ
     filing_status: HEAD_OF_HOUSEHOLD
     az_family_tax_credit_eligible: true
     tax_unit_size: 6
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 240
-
-# =============================================================================
-# 2025 Tax Year Tests
-# Family Tax Credit: $40 per person
-# Max: $240 for Joint/HOH, $120 for Single/Separate
-#
-# Income Limits (unchanged):
-# - Joint: $20,000 (0-1 deps), $23,600 (2 deps), $27,300 (3 deps), $31,000 (4+ deps)
-# - HOH: $20,000 (0-1 deps), $20,135 (2 deps), $23,800 (3 deps), $25,200 (4 deps), $26,575 (5+ deps)
-# - Single/Separate: $10,000
-# =============================================================================
-
 - name: 2025 - Joint filer with 2 dependents eligible
   period: 2025
   input:
     state_code: AZ
     filing_status: JOINT
     az_family_tax_credit_eligible: true
     tax_unit_size: 4
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    # 4 people * $40 = $160
     az_family_tax_credit: 160
-
 - name: 2025 - Joint filer at max credit
   period: 2025
   input:
     state_code: AZ
     filing_status: JOINT
     az_family_tax_credit_eligible: true
     tax_unit_size: 8
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    # 8 people * $40 = $320, but capped at $240 for joint
     az_family_tax_credit: 240
-
 - name: 2025 - Single filer at max credit
   period: 2025
   input:
     state_code: AZ
     filing_status: SINGLE
     az_family_tax_credit_eligible: true
     tax_unit_size: 4
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    # 4 people * $40 = $160, but capped at $120 for single
     az_family_tax_credit: 120
-
 - name: 2025 - HOH filer eligible
   period: 2025
   input:
     state_code: AZ
     filing_status: HEAD_OF_HOUSEHOLD
     az_family_tax_credit_eligible: true
     tax_unit_size: 4
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    # 4 people * $40 = $160
     az_family_tax_credit: 160
-
 - name: 2025 - Separate filer not eligible (over income)
   period: 2025
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_family_tax_credit_eligible: false
     tax_unit_size: 2
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_family_tax_credit: 0
-
 - name: 2025 - Separate filer eligible
   period: 2025
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_family_tax_credit_eligible: true
     tax_unit_size: 1
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    # 1 person * $40 = $40
     az_family_tax_credit: 40

policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_non_refundable_credit_order.yaml

@@ -0,0 +1,13 @@
+- name: Applied non-refundable credits follow filing order
+  period: 2021
+  input:
+    state_code: AZ
+    az_income_tax_before_non_refundable_credits: 100
+    az_charitable_contributions_credit_potential: 80
+    az_dependent_tax_credit_potential: 40
+    az_family_tax_credit_eligible: true
+    az_family_tax_credit_potential: 30
+  output:
+    az_charitable_contributions_credit: 80
+    az_dependent_tax_credit: 20
+    az_family_tax_credit: 0

policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/charitable_contribution/az_charitable_contributions_credit.yaml

@@ -3,78 +3,84 @@
   input:
     state_code: AZ
     filing_status: JOINT
-    az_charitable_contributions_to_qualifying_charitable_organizations: 2_000 #841
-    az_charitable_contributions_to_qualifying_foster_care_organizations: 1_100 #1051
+    az_charitable_contributions_to_qualifying_charitable_organizations: 2000
+    az_charitable_contributions_to_qualifying_foster_care_organizations: 1100
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    az_charitable_contributions_credit: 1_892
-
+    az_charitable_contributions_credit: 1892
 - name: az_charitable_contributions_credit for qualifying forster (JOINT, below cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: JOINT
-    az_charitable_contributions_to_qualifying_charitable_organizations: 200 
-    az_charitable_contributions_to_qualifying_foster_care_organizations: 300 
+    az_charitable_contributions_to_qualifying_charitable_organizations: 200
+    az_charitable_contributions_to_qualifying_foster_care_organizations: 300
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 500
-
-- name: az_charitable_contributions_credit for qualifying forster (JOINT, one below cap, one above cap)
+- name: az_charitable_contributions_credit for qualifying forster (JOINT, one below
+    cap, one above cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: JOINT
-    az_charitable_contributions_to_qualifying_charitable_organizations: 1_000
+    az_charitable_contributions_to_qualifying_charitable_organizations: 1000
     az_charitable_contributions_to_qualifying_foster_care_organizations: 500
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
-    az_charitable_contributions_credit: 1_341
-
-- name: az_charitable_contributions_credit for qualifying forster (SINGLE, one below cap, one above cap)
+    az_charitable_contributions_credit: 1341
+- name: az_charitable_contributions_credit for qualifying forster (SINGLE, one below
+    cap, one above cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: SINGLE
-    az_charitable_contributions_to_qualifying_charitable_organizations: 300 #421
-    az_charitable_contributions_to_qualifying_foster_care_organizations: 1_100 #526
+    az_charitable_contributions_to_qualifying_charitable_organizations: 300
+    az_charitable_contributions_to_qualifying_foster_care_organizations: 1100
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 826
-
-- name: az_charitable_contributions_credit for qualifying forster (SEPARATE, below cap)
+- name: az_charitable_contributions_credit for qualifying forster (SEPARATE, below
+    cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: SEPARATE
-    az_charitable_contributions_to_qualifying_charitable_organizations: 200 
-    az_charitable_contributions_to_qualifying_foster_care_organizations: 300 
+    az_charitable_contributions_to_qualifying_charitable_organizations: 200
+    az_charitable_contributions_to_qualifying_foster_care_organizations: 300
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 500
-
-- name: az_charitable_contributions_credit for qualifying forster (SEPARATE, above cap)
+- name: az_charitable_contributions_credit for qualifying forster (SEPARATE, above
+    cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_charitable_contributions_to_qualifying_charitable_organizations: 600
     az_charitable_contributions_to_qualifying_foster_care_organizations: 600
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 947
-
-
-- name: az_charitable_contributions_credit for qualifying organization (SEPARATE, one above cap, one below cap)
+- name: az_charitable_contributions_credit for qualifying organization (SEPARATE,
+    one above cap, one below cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_charitable_contributions_to_qualifying_charitable_organizations: 300
     az_charitable_contributions_to_qualifying_foster_care_organizations: 600
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 826
-  
-- name: az_charitable_contributions_credit for qualifying organization (SEPARATE, one above cap, one below cap)
+- name: az_charitable_contributions_credit for qualifying organization (SEPARATE,
+    one above cap, one below cap)
   period: 2023
   input:
     state_code: AZ
     filing_status: SEPARATE
     az_charitable_contributions_to_qualifying_charitable_organizations: 500
     az_charitable_contributions_to_qualifying_foster_care_organizations: 400
+    az_income_tax_before_non_refundable_credits: 1000000
   output:
     az_charitable_contributions_credit: 821