Adjust the NYWFTC to reflect the newest reform structure (#5056)

* Include 18 year olds in the NYWFTC as younger children Fixes #5055 * use reform parameter * change NYWFTC child definition * reformatting * reference link * format * tests and age thresholds * dependent definitions * children * fix the dependent definitions * law and reference, format * format * reference * final checks
PolicyEngine · Sep 23, 2024 · dddd7ad · dddd7ad
1 parent e204f02
commit dddd7ad
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Showing 12 changed files with 408 additions and 110 deletions.
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Include 17 year olds in the NYWFTC as younger children.
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/amount/max.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/amount/max.yaml
@@ -9,13 +9,13 @@ metadata:
       interval: 50
   label: New York Working Families Tax Credit max amount
   reference: 
-    - title: New York Senate Bill S277B (2)(C)
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C §3(c-2)(2)(C)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
   2024-01-01: 0
-
-  # 2024-01-01: 800
-  # 2025-01-01: 1_100
-  # 2026-01-01: 1_350
-  # 2027-01-01: 1_600
+# 2024: 550
+# 2025: 800
+# 2026: 1,000
+# 2027: 1,200
+# 2028: 1,600
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/amount/min.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/amount/min.yaml
@@ -9,12 +9,8 @@ metadata:
   period: year
   label: New York Working Families Tax Credit minimum amount
   reference: 
-    - title: New York Senate Bill S277B (2)(C)
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C §3(c-2)(2)(C)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
-  2024-01-01: 0
-  # 2024-01-01: 150
-  # 2025-01-01: 250
-  # 2026-01-01: 400
-  # 2027-01-01: 500
+  2024-01-01: 0 # 100
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/child_age_threshold.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/child_age_threshold.yaml
@@ -4,8 +4,14 @@ metadata:
   period: year
   label: New York Working Families Tax Credit child age threshold
   reference: 
-    - title: New York Senate Bill S277B (C-2)(C)
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C §4(c)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
-  2024-01-01: 0 # 18
+  2024-01-01: 0 # 17
+
+# The age threshold is applied to is applied to different provisions of the Working Families Tax Credit
+# at different time periods 
+# The Working Families defines child dependents as defined in 26 USC §24(c)(1) with the exception 
+# of the age threshold and student dependents
+
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/eitc/match.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/eitc/match.yaml
@@ -4,13 +4,13 @@ metadata:
   period: year
   label: New York Working Families Tax Credit EITC match
   reference: 
-    - title: New York Senate Bill S277B Subs. 1 (9)
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C Subs. 1 (9)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
   2024-01-01: 0
-  # 2023-01-01: 0.3
-  # 2024-01-01: 0.21
-  # 2025-01-01: 0.15
-  # 2026-01-01: 0.1
-  # 2027-01-01: 0
+# 2025: 25%
+# 2026: 20%
+# 2027: 15%
+# 2028: 10%
+# 2029: 0
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/exemptions/child_age_threshold.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/exemptions/child_age_threshold.yaml
@@ -1,11 +1,11 @@
-description: New York limits the exemptions under the Working Families Tax Credit to children below this age.
+description: New York limits the exemptions under the Working Families Tax Credit to children younger than this age.
 metadata:
   unit: year
   period: year
   label: New York Working Families Tax Credit exemptions child age threshold
   reference: 
-    - title: New York Senate Bill S277B (C-2)(C)
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C §4(c)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
   2024-01-01: 0 # 18
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/exemptions/in_effect.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/exemptions/in_effect.yaml
@@ -0,0 +1,13 @@
+description: The Exemption reform of the New York Working Families Tax Credit reform applies if this is true.
+metadata:
+  unit: bool
+  period: year
+  label: New York Working Families Tax Credit exemption reform applies
+  reference:
+    - title: New York Senate Bill S277C §4(c)
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
+
+values:
+  2025-01-01: false
+  # Applies in the second taxable year after the bill is enacted
+  2026-01-01: true
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/in_effect.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/in_effect.yaml
@@ -4,8 +4,8 @@ metadata:
   period: year
   label: New York Working Families Tax Credit reform in effect
   reference:
-    - title: New York Senate Bill S277B
-      href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+    - title: New York Senate Bill S277C
+      href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 values:
   0000-01-01: false
diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/reduction/married.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/reduction/married.yaml
@@ -6,8 +6,8 @@ metadata:
   period: year
   label: New York working families tax credit married reduction
   reference:
-  - title: New York Senate Bill S277B (2)(B)
-    href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+  - title: New York Senate Bill S277C §3(c-2)(2)(B)
+    href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 brackets:
   - threshold:
@@ -17,10 +17,9 @@ brackets:
   - threshold:
       values:
         2024-01-01: 0
-        # 2024-01-01: 130_000
-        # 2025-01-01: 110_000
-        # 2026-01-01: 90_000
-        # 2027-01-01: 50_000
+        # 2025: 110,000
+        # 2028: 90,000
+        # 2029: 50,000
       uprating:
         parameter: gov.irs.uprating
         rounding:

diff --git a/policyengine_us/parameters/gov/contrib/states/ny/wftc/reduction/single.yaml b/policyengine_us/parameters/gov/contrib/states/ny/wftc/reduction/single.yaml
@@ -6,8 +6,8 @@ metadata:
   period: year
   label: New York working families tax credit single reduction
   reference:
-  - title: New York Senate Bill S277B (2)(B)
-    href: https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B
+  - title: New York Senate Bill S277C §3(c-2)(2)(B)
+    href: https://legislation.nysenate.gov/pdf/bills/2023/S277C
 
 brackets:
   - threshold:
@@ -17,10 +17,11 @@ brackets:
   - threshold:
       values:
         2024-01-01: 0
-        # 2024-01-01: 65_000
-        # 2025-01-01: 55_000
-        # 2026-01-01: 45_000
-        # 2027-01-01: 25_000
+        # 2025: 75,000
+        # 2026: 65,000
+        # 2027: 55,000
+        # 2028: 45,000
+        # 2029: 25,000
       uprating:
         parameter: gov.irs.uprating
         rounding:

diff --git a/policyengine_us/reforms/states/ny/wftc/ny_working_families_tax_credit.py b/policyengine_us/reforms/states/ny/wftc/ny_working_families_tax_credit.py
@@ -25,22 +25,30 @@ def formula(tax_unit, period, parameters):
             min_amount = p.amount.min * children
             return max_(min_amount, max_amount - reduction)
 
-    class ny_wftc_eligible_children(Variable):
-        value_type = float
-        entity = TaxUnit
+    class ny_wftc_eligible_child(Variable):
+        value_type = bool
+        entity = Person
         label = "New York Working Families Tax Credit"
         unit = USD
         definition_period = YEAR
         defined_for = StateCode.NY
 
-        def formula(tax_unit, period, parameters):
-            person = tax_unit.members
+        def formula(person, period, parameters):
             age = person("age", period)
             is_dependent = person("is_tax_unit_dependent", period)
             p = parameters(period).gov.contrib.states.ny.wftc
-            age_eligible = age < p.child_age_threshold
-            eligible_child = is_dependent & age_eligible
-            return tax_unit.sum(eligible_child)
+            age_eligible = age <= p.child_age_threshold
+            return is_dependent & age_eligible
+
+    class ny_wftc_eligible_children(Variable):
+        value_type = float
+        entity = TaxUnit
+        label = "New York Working Families Tax Credit"
+        unit = USD
+        definition_period = YEAR
+        defined_for = StateCode.NY
+
+        adds = ["ny_wftc_eligible_child"]
 
     # Replicating the relevant parts of the EITC for for younger
     # and older dependents separately
@@ -49,16 +57,14 @@ class is_younger_child_dependent(Variable):
         value_type = bool
         entity = Person
         label = "Is a younger child dependents"
-        reference = (
-            "https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B"
-        )
+        reference = "https://legislation.nysenate.gov/pdf/bills/2023/S277C"
         definition_period = YEAR
 
         def formula(person, period, parameters):
             is_dependent = person("is_tax_unit_dependent", period)
             age = person("age", period)
-            p = parameters(period).gov.irs.dependent.ineligible_age
-            age_eligible = age < p.non_student
+            p = parameters(period).gov.contrib.states.ny.wftc
+            age_eligible = age < p.child_age_threshold
             return is_dependent & age_eligible
 
     class eitc_younger_children_count(Variable):
@@ -224,19 +230,18 @@ class is_older_child_dependent(Variable):
         value_type = bool
         entity = Person
         label = "Is a older child dependents"
-        reference = (
-            "https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B"
-        )
+        reference = "https://legislation.nysenate.gov/pdf/bills/2023/S277C"
         definition_period = YEAR
         defined_for = StateCode.NY
 
         def formula(person, period, parameters):
             is_dependent = person("is_tax_unit_dependent", period)
             age = person("age", period)
-            p = parameters(period).gov.irs.dependent.ineligible_age
+            p_irs = parameters(period).gov.irs.dependent.ineligible_age
             student = person("is_full_time_student", period)
-            student_age_eligible = age < p.student
-            older_student_age_eligible = p.non_student <= age
+            student_age_eligible = age < p_irs.student
+            p_ref = parameters(period).gov.contrib.states.ny.wftc
+            older_student_age_eligible = p_ref.child_age_threshold <= age
             age_eligible = student_age_eligible & older_student_age_eligible
             return is_dependent & student & age_eligible
 
@@ -415,9 +420,7 @@ class ny_eitc(Variable):
         label = "New York EITC"
         unit = USD
         definition_period = YEAR
-        reference = (
-            "https://www.nysenate.gov/legislation/bills/2023/S277/amendment/B"
-        )
+        reference = "https://legislation.nysenate.gov/pdf/bills/2023/S277C"
         defined_for = StateCode.NY
 
         def formula(tax_unit, period, parameters):
@@ -434,6 +437,23 @@ def formula(tax_unit, period, parameters):
             household_credit = tax_unit("ny_household_credit", period)
             return max_(0, total_credit - household_credit)
 
+    class ny_exemptions_dependent(Variable):
+        value_type = bool
+        entity = Person
+        label = "Dependent under the New York exemptions definition"
+        unit = USD
+        definition_period = YEAR
+        reference = "https://www.nysenate.gov/legislation/laws/TAX/616"
+        defined_for = StateCode.NY
+
+        def formula(person, period, parameters):
+            p = parameters(period).gov.contrib.states.ny.wftc.exemptions
+            if p.in_effect:
+                child_dependent = person("is_child_dependent", period)
+                wftc_eligible_child = person("ny_wftc_eligible_child", period)
+                return child_dependent & ~wftc_eligible_child
+            return person("is_tax_unit_dependent", period)
+
     class ny_exemptions(Variable):
         value_type = float
         entity = TaxUnit
@@ -444,14 +464,10 @@ class ny_exemptions(Variable):
         defined_for = StateCode.NY
 
         def formula(tax_unit, period, parameters):
-            person = tax_unit.members
-            dependent = person("is_tax_unit_dependent", period)
-            p = parameters(period).gov.contrib.states.ny.wftc
-            age = person("age", period)
-            eligible_dependent = dependent & (
-                age >= p.exemptions.child_age_threshold
+
+            count_dependents = add(
+                tax_unit, period, ["ny_exemptions_dependent"]
             )
-            count_dependents = tax_unit.sum(eligible_dependent)
             dependent_exemption = parameters(
                 period
             ).gov.states.ny.tax.income.exemptions.dependent
@@ -474,6 +490,7 @@ def formula(tax_unit, period, parameters):
     class reform(Reform):
         def apply(self):
             self.update_variable(ny_working_families_tax_credit)
+            self.update_variable(ny_wftc_eligible_child)
             self.update_variable(ny_wftc_eligible_children)
             self.update_variable(is_younger_child_dependent)
             self.update_variable(eitc_younger_children_count)
@@ -499,6 +516,7 @@ def apply(self):
             self.update_variable(older_eitc)
             self.update_variable(ny_eitc)
             self.neutralize_variable("ny_ctc")
+            self.update_variable(ny_exemptions_dependent)
             self.update_variable(ny_exemptions)
             self.update_variable(ny_refundable_credits)