Puerto Rico Earned Income Credit

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Puerto Rico earned income credit.

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/eligibility/min.yaml

@@ -0,0 +1,12 @@
+description: Puerto Rico limits the Earned Income Tax Credit to filers of this age or older.
+values:
+  2023-01-01: 19
+metadata:
+  unit: year
+  period: year
+  label: Puerto Rico earned income credit minimum age
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=1
+    - title: P.R. Laws tit. 13, § 30211
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/eligibility/separate_filer.yaml

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+description: Puerto Rico allows married filing separate filers eligible for the EITC when this is true.
+values:
+  2023-01-01: false
+metadata:
+  unit: bool
+  label: Puerto Rico earned income credit separate filers eligible
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=1
+    - title: P.R. Laws tit. 13, § 30211
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/investment_income/limit.yaml

@@ -0,0 +1,13 @@
+description: Puerto Rico limits the earned income credit to filers with investment income below this threshold. 
+values: 
+  2010-12-31: 2_200 
+  2023-01-01: 10_000
+metadata:
+  unit: currency-USD
+  label: Puerto Rico earned income credit investment income limit
+  period: year
+  reference:
+    - title: P.R. Laws tit. 13, § 30211 (e)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=4

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/investment_income/sources.yaml

@@ -0,0 +1,17 @@
+description: Puerto Rico accounts for the following investment income sources, under the earned income tax credit. 
+values:
+  2023-01-01: 
+  - interest_income
+  - dividend_income
+  - rental_income
+  - capital_gains
+  - child_support_received
+metadata:
+  unit: list
+  period: year
+  label: Puerto Rico earned income credit investment income sources
+  reference:
+    - title: P.R. Laws tit. 13, § 30211 (e)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=4

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/max_amount.yaml

@@ -0,0 +1,29 @@
+description: Puerto Rico provides the following maximum amount of earned income credit.
+brackets:
+  - threshold: 
+      2023-01-01: 0
+    amount:
+      2023-01-01: 1_656
+  - threshold: 
+      2023-01-01: 1
+    amount:
+      2023-01-01: 3_864
+  - threshold: 
+      2023-01-01: 2
+    amount:
+      2023-01-01: 6_072
+  - threshold: 
+      2023-01-01: 3
+    amount:
+      2023-01-01: 7_173
+metadata:
+  amount_unit: currency-USD
+  threshold_unit: child
+  type: single_amount
+  label: Puerto Rico earned income credit max amount
+  period: year
+  reference:
+    - title: P.R. Laws tit. 13, § 30211 (1)-(6)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=2

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_in_rate.yaml

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+description: Puerto Rico phases the earned income credit in at this rate of state gross income.
+# determine phase in rate percentage by number of children
+brackets:
+  - threshold:
+      2023-01-01: 0
+    amount:
+      2023-01-01: 0.15
+  - threshold: 
+      2023-01-01: 1
+    amount:
+      2023-01-01: 0.3398
+  - threshold:
+      2023-01-01: 2
+    amount:
+      2023-01-01: 0.4
+  - threshold:
+      2023-01-01: 3
+    amount:
+      2023-01-01: 0.4483
+metadata:
+  amount_unit: /1
+  threshold_unit: child
+  type: single_amount
+  label: Puerto Rico earned income credit phase in rate
+  period: year
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=2
+    - title: P.R. Laws tit. 13, § 30211 (1) - (6)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_out/rate.yaml

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+description: Puerto Rico phases the earned income credit out at this rate of state gross income based on the filer's number of dependents.
+# determine phase-out rate based on number of children
+brackets:
+  - threshold: 
+      2023-01-01: 0
+    amount:
+      2023-01-01: 0.15
+  - threshold: 
+      2023-01-01: 1
+    amount:
+      2023-01-01: 0.2692
+  - threshold: 
+      2023-01-01: 2
+    amount:
+      2023-01-01: 0.3438
+  - threshold: 
+      2023-01-01: 3
+    amount:
+      2023-01-01: 0.3421
+metadata:
+  amount_unit: /1
+  threshold_unit: child
+  type: single_amount
+  label: Puerto Rico earned income credit phase out rate
+  period: year
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=2
+    - title: P.R. Laws tit. 13, § 30211 (1) - (6)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_out/threshold/joint.yaml

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+description: Puerto Rico phases the earned income credit out above this threshold of state gross income.
+# determines the threshold for the phase-in amount to be applied based on # of children
+brackets:
+  - threshold: 
+      2023-01-01: 0
+    amount:
+      2023-01-01: 19_870
+  - threshold: 
+      2023-01-01: 1
+    amount:
+      2023-01-01: 24_280
+  - threshold: 
+      2023-01-01: 2
+    amount:
+      2023-01-01: 27_590
+  - threshold: 
+      2023-01-01: 3
+    amount:
+      2023-01-01: 27_590
+metadata:
+  amount_unit: currency-USD
+  threshold_unit: child
+  type: single_amount
+  label: Puerto Rico earned income credit phase out threshold
+  period: year
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=2
+    - title: P.R. Laws tit. 13, § 30211 (1) - (6)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_out/threshold/single.yaml

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+description: Puerto Rico phases the earned income credit above this threshold of state gross income.
+# determines the threshold for the phase-in amount to be applied based on # of children
+brackets:
+  - threshold: 
+      2023-01-01: 0
+    amount:
+      2023-01-01: 17_660
+  - threshold: 
+      2023-01-01: 1
+    amount:
+      2023-01-01: 19_870
+  - threshold: 
+      2023-01-01: 2
+    amount:
+      2023-01-01: 23_180
+  - threshold: 
+      2023-01-01: 3
+    amount:
+      2023-01-01: 23_180
+metadata:
+  amount_unit: currency-USD
+  threshold_unit: child
+  type: single_amount
+  label: Puerto Rico earned income credit phase out threshold
+  period: year
+  reference:
+    - title: Schedule CT Individual, Earned Income Credit, 2023
+      href: https://hacienda.pr.gov/sites/default/files/schedule_ct_rev._jul_5_23_informative_-_instructions.pdf#page=2
+    - title: P.R. Laws tit. 13, § 30211 (1) - (6)
+      href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit

policyengine_us/parameters/gov/territories/pr/tax/income/credits/refundable.yaml

@@ -12,3 +12,7 @@ values:
   2021-01-01:
     - pr_low_income_credit
     - pr_compensatory_low_income_credit
+  2023-01-01:
+    - pr_low_income_credit
+    - pr_compensatory_low_income_credit
+    - pr_earned_income_credit

policyengine_us/tests/policy/baseline/gov/territories/pr/tax/income/credits/earned_income/integration.yaml

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+- name: integration test 1, a married couple with 2 dependents
+  period: 2024
+  input:
+    people:
+      person1: 
+        pr_gross_income_person: 15_000
+        age: 40
+        is_tax_unit_head_or_spouse: true
+      person2:
+        pr_gross_income_person: 10_000
+        age: 44
+        is_tax_unit_head_or_spouse: true
+      person3:
+        pr_gross_income_person: 0
+        age: 5
+      person4:
+        pr_gross_income_person: 1_000
+        age: 15
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2, person3, person4]
+        state_code: PR
+  output: 
+    pr_earned_income_credit_eligible: true
+    pr_earned_income_credit: 6_072
+
+- name: integration test 2, individual with 4 dependents
+  period: 2024
+  input:
+    people:
+      person1: 
+        pr_gross_income_person: 30_000
+        age: 35
+        is_tax_unit_head_or_spouse: true
+      person2:
+        pr_gross_income_person: 500
+        age: 5
+      person3:
+        pr_gross_income_person: 0
+        age: 15
+      person4:
+        pr_gross_income_person: 0
+        age: 2
+      person5:
+        pr_gross_income_person: 0
+        age: 11
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4, person5]
+        filing_status: SINGLE
+    households:
+      household:
+        members: [person1, person2, person3, person4, person5]
+        state_code: PR
+  output: 
+    pr_earned_income_credit_eligible: true
+    pr_earned_income_credit: 4_839.878

policyengine_us/tests/policy/baseline/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit.yaml

@@ -0,0 +1,59 @@
+- name: Not eligible person, 2024
+  period: 2024
+  input:
+    pr_earned_income_child_count: 2
+    filing_status: SINGLE
+    pr_gross_income_person: 10_000
+    pr_earned_income_credit_eligible: false
+  output:
+    pr_earned_income_credit: 0
+
+- name: Eligible person, 0 children with max credit
+  period: 2024
+  input:
+    pr_earned_income_child_count: 0
+    filing_status: SINGLE
+    pr_gross_income_person: 17_660
+    pr_earned_income_credit_eligible: true
+  output:
+    pr_earned_income_credit: 1_656
+
+- name: Eligible person, 1 child and higher bracket
+  period: 2024
+  input:
+    pr_earned_income_child_count: 1
+    filing_status: SINGLE
+    pr_gross_income_person: 25_000
+    pr_earned_income_credit_eligible: true
+  output:
+    pr_earned_income_credit: 2_483.004
+
+- name: Eligible person, 0 child and filing jointly
+  period: 2024
+  input:
+    pr_earned_income_child_count: 0
+    filing_status: JOINT
+    pr_gross_income_person: 19_870
+    pr_earned_income_credit_eligible: true
+  output:
+    pr_earned_income_credit: 1_656
+
+- name: Eligible person, 1 child, filing jointly, higher bracket
+  period: 2024
+  input:
+    pr_earned_income_child_count: 1
+    filing_status: JOINT
+    pr_gross_income_person: 25_000
+    pr_earned_income_credit_eligible: true
+  output:
+    pr_earned_income_credit: 3_670.176
+
+- name: Eligible person, 5 child, single, higher bracket
+  period: 2024
+  input:
+    pr_earned_income_child_count: 5
+    filing_status: SINGLE
+    pr_gross_income_person: 50_000
+    pr_earned_income_credit_eligible: true
+  output:
+    pr_earned_income_credit: 0