Summary

Automated weekly update of policyengine-us.

Related to #1178

Modal Version Release

modal_release:
  new_app_target: frontier
  promote_existing_frontier: true
  cleanup_target: retired

Version Updates

What Changed (policyengine_us 1.691.1 → 1.711.0)

Added

• Added coding-agent guidance for partner API contract tests and removed stale working references.
• Add an annual approximation of the 2018-2019 Arkansas Works Medicaid work requirement.
• Added Alabama senior homestead property tax relief.
• Add Arizona MCTCP subtraction (Executive Order 2025-15) propagating the OBBBA federal enhanced senior, tip, overtime, and auto loan interest deductions to AZ subtractions starting 2025.
• Added the Medicaid long-term care home equity limit from H.R. 1.
• Cap traditional and Roth 401(k) and 403(b) contributions at the IRC Section 402(g) elective deferral limit, including age-based catch-ups.
• Implement Missouri State Supplementary Payment (SAB and SNC components) under DSS Family Support Division.
• Add Maryland Public Assistance to Adults (state SSP).
• Added the Indiana Over 65 Property Tax Credit.
• Added the North Dakota Renter's Refund.
• Added the Pennsylvania Property Tax/Rent Rebate standard rebate.
• Added a data-overridable SSI disability criteria variable for calibrated SSI simulations.
• Add statutory American Opportunity Credit student eligibility inputs and compute eligibility from those inputs.
• Added gov.contrib.refundable_credit_conversion reform: a configurable refundable flat credit composed of per-taxpayer, per-CTC-dependent, per-other-dependent, per-household, and per-earner earnings-subsidy components. The credit is appended to the federal refundable credit list when in_effect is true. Repealing existing credits and deductions is handled separately via direct overrides to baseline parameters.
• Implemented the Alaska Child Care Assistance Program (CCAP) for PASS II (post-ATAP transitional) and PASS III (general low-income); PASS I (ATAP-bundled) and PASS IV (OCS protective services) not modeled.
• YAML tests under tests/policy/baseline/partners/ that fail CI when a PR would change calculation results for any household API partner, surfaced as a standalone "Household API Partners" CI check. Includes (1) customer fixture mirrors for Amplifi, Impactica, and MyFriendBen, (2) analytics_coverage/ with 81 per-signature test cases grouped by state (one per unique input-variable shape sent through the production API), and (3) analytics_coverage/edge_cases/ with 642 boundary cases organized as federal/{category}/{program}/ (tax_credits, nutrition, healthcare, childcare, cash, housing, utility, composition) and state/{xx}/{program}.yaml. Cases target binding thresholds — income at FPL boundaries, age cutoffs, asset limits, immigration status, household composition — using state-aware values (e.g., per-state SNAP BBCE multipliers).
• Added Utah Homeowner's/Renter's Relief.
• Implemented Minnesota's renter's credit under Minn. Stat. §290.0693 for tax year 2024 onward, including household-income adjustments, rent constituting property taxes, refundable credit integration, and TAXSIM state property tax credit coverage.
• Add SC OBBBA non-conformity addition for 2025 (standard deduction increase, senior deduction, tip/overtime/auto loan deductions).
• Added a BEA NIPA proprietors' income mapping variable.
• Added the HUD Fair Market Rent CSV data store, a hud_fair_market_rent variable, and a download_hud_fmr helper script (Phase 1: county-level FY2025 with a placeholder seed row — full data refresh runs via the script with a free HUD API key).

Changed

• • Made Medicaid cost if enrolled data-backed and used Medicaid enrollment, rather than the Medicaid dollar value, for categorical eligibility checks.
• Update Medicaid work requirement eligibility to reflect CMS community engagement guidance.
• Apply Georgia HB463 (2025-2026): cut the flat individual income tax rate to 4.99%, raise the standard deduction to $30,000 joint / $15,000 single, raise the dependent exemption to $5,000, increase the age-65+ retirement income exclusion to $70,000 in 2027, and add qualified-overtime and cash-tip exclusions for tax years 2026-2028.
• Reintroduce age-specific labor supply response multipliers without changing the legacy scalar income elasticity path, and fix the labor-supply-response zero guard so nonzero primary or secondary substitution elasticities are not skipped.
• Replaced the full US County enum (3,175 values) with a 29-value AKCCAPRateRegion enum for Alaska CCAP rate-region lookups, cutting the AK CCAP test suite from ~10 minutes to ~12 seconds.
• Compute the Supplemental Poverty Measure capped housing subsidy from housing assistance, the SPM threshold housing portion, and HUD tenant payment.
• Gate housing assistance on a take-up input and use HUD Fair Market Rent as the national payment-standard fallback.
• Remove redundant uprating metadata and class-level aggregation metadata from variables that already define their computation explicitly.
• Include child support received and workers' compensation in SPM resources, and keep SPM housing and energy subsidies on canonical input variables.
• Apply Arkansas HB1001 (2026 1st Extraordinary Session) individual income tax rate cuts effective tax year 2026.
• Remove the reported SNAP simulation switch and public SNAP/TANF-reported variables, and make SSI disability depend on modeled disability rather than reported SSI receipt.
• Remove public reported-variable paths for WIC, school meals, state income tax, SALT, and SPM tax inputs; include ACP/EBB directly in net income, and rename remaining data-backed SPM housing and energy subsidy inputs without the reported suffix.
• Make social_security_retirement the canonical input variable and remove the separate reported Social Security retirement variable and parameter.

Fixed

• Validate changed changelog fragment paths in pull request CI.
• Apply rate cap before deducting copay in DC, NJ, SC, RI, PA, ME, MA, VA, and DE child care subsidy formulas, so the family copay is properly deducted from the state's max reimbursement when expenses exceed the cap.
• Model the recent incarceration exception for Medicaid community engagement requirements.
• Deduct the Parent Share of Cost from Texas Child Care Services when childcare expense exceeds the Board's maximum reimbursement rate.
• Prevent a net capital loss in the Delaware pension exclusion basket from producing a negative subtraction that wipes out other DE subtractions.
• Fixed RuntimeWarning: invalid value encountered in divide in qbid_amount when the QBI phaseout length parameter is zero. The unguarded (taxinc_less_qbid - po_start) / po_length is now np.divide(..., where=po_length > 0) with a fully-phased-out fallback. Resolves the QBI source of the divide warnings tracked in #8216.
• Add regression tests asserting Roth 401(k) and 403(b) contributions do not reduce taxable wages, and document the exclusion in the pre-tax contributions parameter.
• Traditional 401(k) and 403(b) elective deferrals no longer incorrectly reduce the FICA (Social Security and Medicare) wage base. Under IRC §3121(a), only Section 125 cafeteria plan items (employer-sponsored health premiums and HSA payroll contributions) reduce FICA wages. This fixes understated Social Security and Medicare tax in any simulation with retirement deferrals.
• Fixed the Maryland pension exclusion maximum amount for 2026.
• Count SSTB self-employment income in Social Security, state and benefit income definitions, and mixed-category QBID allocation.
• Fixed Idaho's OBBBA Schedule 1-A deduction conformity after 2028.
• Fix EITC earned income calculations for self-employment loss netting.
• Fix Medicare enrollment defaults by modeling enrollment as eligibility-gated take-up.
• Restricted the New Mexico net capital gains 40% deduction to zero from 2025-01-01 per HB0037 (2024), which amended NMSA 7-2-34(A)(2) to apply the 40% element only to gains from the sale of a business. The capped element (up to $1,000) continues to apply.
• Backdate Massachusetts TAFDC and EAEDC standard assistance amounts to include FY25 (April 2025) 10% increase. The FY24 raise scheduled for April 2024 was rescinded by 9C cuts in January 2024; the actual increase came from the FY25 budget.
• Update 2026 Social Security benefit parameters to official SSA amounts and project wage-indexed thresholds with statutory NAWI formulas.
• Extend long-run dollar-input upraters through 2100 and limit the Trustees core threshold reform to federal wage-indexed tax parameters.
• Use HUD Section 8 income limits to determine housing assistance eligibility.
• Extend the CRFB non-refundable Social Security credit reform so it continues feeding into non-refundable credits after 2035.
• Subtract Form 4952 investment-income elections from net capital gain for the federal capital-gains tax.
• Update the 2026 Social Security payroll cap to the official SSA contribution and benefit base.
• Fix asset stock variables being divided across months in SNAP categorical eligibility calculations.
• Fixed the Nebraska refundable Child Tax Credit child-care eligibility proxy to read tax_unit_childcare_expenses (populated by typical tax filers) instead of pre_subsidy_childcare_expenses (only populated by benefits-program calculations).
• Fixed the AMT capital-gains calculation to read the regular-tax ordinary-income portion (Schedule D Tax Worksheet line 14 / line 21) for Form 6251 Part III line 27, so that filers whose AMTI minus exemption is below the 20% LTCG bracket threshold no longer overflow gains into the 20% bracket.
• Set explicit 2025 Maine property tax fairness credit benefit-base values to match the published Schedule PTFC/STFC line 8 table ($2,550 single / $3,300 HoH-one-child or joint-no-child / $4,050 joint or HoH-multi / $4,100 senior). IRS uprating with downwards $50 rounding produced values $50 short.
• Applied the 2025 federal-AGI-based phaseout to the Maine non-military pension income deduction.
• Adjust the Kentucky family size tax credit rate brackets at the 1.27 and 1.33 boundaries to account for KY's 0.5-cent rounding-up convention in the Schedule ITC table.
• Fix tax_unit_itemizes tied-federal-tax fallback to compare federal standard against federal itemized deductions, restoring TaxAct/TAXSIM behavior and resolving downstream CO/VT/LA state-tax discrepancies.
• Updated the Maine Sales Tax Fairness Credit base amount and phase-out start for 2025.

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