Date Hawaii's EITC from 2018, confine the Act 115 refund to 2021, and use each year's military pay cap

changelog.d/hi-credit-start-dates.fixed.md

@@ -0,0 +1 @@
+Stop paying the Hawaii earned income tax credit before 2018 and the Act 115 refund outside 2021, and use each year's Hawaii military reserve pay exclusion cap for 2015-2025.

policyengine_us/parameters/gov/states/hi/tax/income/credits/act_115_rebate/joint.yaml

@@ -15,8 +15,14 @@ brackets:
   - threshold:
       2021-01-01: -.inf
     amount:
+      # Model years start in 2015. Act 115 paid a one-time refund to filers
+      # of a 2021 Form N-11.
+      2000-01-01: 0
       2021-01-01: 300
+      2022-01-01: 0
   - threshold:
       2021-01-01: 200_000
     amount:
+      2000-01-01: 0
       2021-01-01: 100
+      2022-01-01: 0

policyengine_us/parameters/gov/states/hi/tax/income/credits/act_115_rebate/single.yaml

@@ -15,8 +15,14 @@ brackets:
   - threshold:
       2021-01-01: -.inf
     amount:
+      # Model years start in 2015. Act 115 paid a one-time refund to filers
+      # of a 2021 Form N-11.
+      2000-01-01: 0
       2021-01-01: 300
+      2022-01-01: 0
   - threshold:
       2021-01-01: 100_000
     amount:
+      2000-01-01: 0
       2021-01-01: 100
+      2022-01-01: 0

policyengine_us/parameters/gov/states/hi/tax/income/credits/eitc/match.yaml

@@ -1,6 +1,9 @@
 description: Hawaii matches this percent of the federal EITC.
 values:
-  2017-01-01: 0.2
+  # Model years start in 2015. The credit applies to taxable years beginning
+  # after December 31, 2017.
+  2000-01-01: 0
+  2018-01-01: 0.2
   2023-01-01: 0.4
   2028-01-01: 0.2
 metadata:
@@ -9,6 +12,10 @@ metadata:
   reference:
     - title: Hawaii Income Tax Law, Chapter 235, Section 235-55.75
       href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=43
+    - title: 2018 Hawaii N-11 Instructions, What's new (Act 107, SLH 2017)
+      href: https://files.hawaii.gov/tax/forms/2018/n11ins.pdf#page=2
+    - title: Hawaii Tax Form N-356 2018
+      href: https://web.archive.org/web/20190819110547/http://files.hawaii.gov/tax/forms/2018/n356_i.pdf#page=2
     - title: Hawaii Tax Form N-356 2022
       href: https://files.hawaii.gov/tax/forms/2022/n356_i.pdf
     - title: Hawaii Tax Form N-356 2023

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

@@ -1,6 +1,9 @@
 description: Hawaii provides the following non-refundable tax credits.
 values:
-  2021-01-01:
+  # Model years start in 2015. Hawaii had no earned income tax credit
+  # before 2018.
+  2000-01-01: []
+  2018-01-01:
     - hi_eitc
   2023-01-01: []
 
@@ -11,5 +14,9 @@ metadata:
   reference:
     - title: Hawaii Revised Statutes Title 14. Taxation 235. Income Tax Law, 235-55.75 Earned income tax credit. # repealed in 2023
       href: https://law.justia.com/codes/hawaii/2022/title-14/chapter-235/section-235-55-75/
+    - title: 2018 Hawaii N-11 Instructions, What's new (Act 107, SLH 2017)
+      href: https://files.hawaii.gov/tax/forms/2018/n11ins.pdf#page=2
+    - title: 2018 Hawaii Form N-356 Instructions
+      href: https://web.archive.org/web/20190819110547/http://files.hawaii.gov/tax/forms/2018/n356_i.pdf#page=2
     - title: 2025 Hawaii N-11 Instructions
       href: https://files.hawaii.gov/tax/forms/current/n11ins.pdf

policyengine_us/parameters/gov/states/hi/tax/income/credits/refundable.yaml

@@ -1,5 +1,12 @@
 description: Hawaii provides the following refundable tax credits.
 values:
+  # Model years start in 2015. The Act 115 refund went only to filers of a
+  # 2021 Form N-11.
+  2000-01-01:
+    - hi_food_excise_credit
+    - hi_cdcc
+    - hi_tax_credit_for_low_income_household_renters
+
   2021-01-01:
     - hi_food_excise_credit
     - hi_cdcc
@@ -22,6 +29,10 @@ metadata:
   period: year
   label: Hawaii refundable tax credits
   reference:
+    - title: 2018 Hawaii N-11 Tax Form
+      href: https://files.hawaii.gov/tax/forms/2018/n11_i.pdf#page=3
+    - title: Hawaii Department of Taxation Announcement No. 2022-03, Act 115 Income Tax Refunds
+      href: https://files.hawaii.gov/tax/news/announce/ann22-03.pdf#page=2
     - title: 2022 Hawaii N-11 Tax Form
       href: https://files.hawaii.gov/tax/forms/2022/n11_i.pdf#page=3
     - title: 2021 Hawaii N-11 Tax Form

policyengine_us/parameters/gov/states/hi/tax/income/subtractions/military_pay/cap.yaml

@@ -1,30 +1,46 @@
 description: Hawaii caps the military reserve or Hawaii national guard duty pay exclusion at this amount.
-values: 
-  2021-01-01: 7_345
+values:
+  2015-01-01: 6_198
+  2016-01-01: 6_279
+  2017-01-01: 6_410
+  2018-01-01: 6_564
+  2019-01-01: 6_735
+  2020-01-01: 6_943
+  2021-01-01: 7_152
+  2022-01-01: 7_345
   2023-01-01: 7_683
   2024-01-01: 8_082
+  2025-01-01: 8_636
 
 metadata:
   uprating: gov.irs.uprating
   label: Hawaii military reserve or national guard duty pay exclusion cap
   period: year
   unit: currency-USD
   reference:
-  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2022 
-    href: https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=13
-  - title: Hawaii 2022 Individual Income Tax Return N-11 From Rev.2022
-    href: https://files.hawaii.gov/tax/forms/2022/n11_i.pdf#page=2
-  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2021 
+  # The value of the subtraction is derived from compensation for
+  # performance of duty, equivalent to pay received for forty-eight drills
+  - title: Hawaii Income Tax Law, Chapter 235, Section 235-7, (a) (7)
+    href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=22
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2015, Line 15
+    href: https://web.archive.org/web/20160207173809/http://files.hawaii.gov/tax/forms/2015/n11ins.pdf#page=14
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2016, Line 15
+    href: https://web.archive.org/web/20170214234012/http://files.hawaii.gov/tax/forms/2016/n11ins.pdf#page=15
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2017, Line 15
+    href: https://web.archive.org/web/20180417023253/http://files.hawaii.gov/tax/forms/2017/n11ins.pdf#page=15
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2018, Line 15
+    href: https://files.hawaii.gov/tax/forms/2018/n11ins.pdf#page=15
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2019, Line 15
+    href: https://files.hawaii.gov/tax/forms/2019/n11ins.pdf#page=15
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2020, Line 15
+    href: https://files.hawaii.gov/tax/forms/2020/n11ins.pdf#page=15
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2021, Line 15
     href: https://files.hawaii.gov/tax/forms/2021/n11ins.pdf#page=13
-  - title: Hawaii 2021 Individual Income Tax Return N-11 From Rev.2021
-    href: https://files.hawaii.gov/tax/forms/2021/n11_i.pdf#page=2  
-  # The value of the subtraction is derived from compensation for  
-  # performance of duty, equivalent to pay received for forty-eight drills 
-  - title: Hawaii Income Tax Law, Chapter 235, Section 235-7, (a) (7)  
-    href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=22 
-  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2023
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2022, Line 15
+    href: https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=13
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2023, Line 15
     href: https://files.hawaii.gov/tax/forms/2023/n11ins.pdf#page=13
-  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2024
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2024, Line 15
     href: https://files.hawaii.gov/tax/forms/2024/n11ins.pdf#page=13
-  - title: 2025 Hawaii N-11 Instructions Military Pay Exclusion
-    href: https://files.hawaii.gov/tax/forms/current/n11ins.pdf#page=13
+  - title: Hawaii Resident Income Tax Instructions N-11 Rev.2025, Line 15
+    href: https://files.hawaii.gov/tax/forms/2025/n11ins.pdf#page=13

policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml

@@ -162,3 +162,52 @@
         state_code: HI
   output:
     hi_act_115_rebate: 0
+
+# Act 115 refunds went only to filers of a 2021 Form N-11 (DOTAX
+# Announcement 2022-03, p.2).
+- name: No refund for 2017
+  period: 2017
+  input:
+    adjusted_gross_income: 50_000
+    filing_status: SINGLE
+    state_code: HI
+  output:
+    hi_act_115_rebate: 0
+
+- name: No refund for 2020
+  period: 2020
+  input:
+    adjusted_gross_income: 50_000
+    filing_status: SINGLE
+    state_code: HI
+  output:
+    hi_act_115_rebate: 0
+
+- name: No refund for 2022
+  period: 2022
+  input:
+    adjusted_gross_income: 50_000
+    filing_status: SINGLE
+    state_code: HI
+  output:
+    hi_act_115_rebate: 0
+
+- name: No refund for joint filers for 2020
+  period: 2020
+  input:
+    people:
+      head:
+        age: 40
+      spouse:
+        age: 40
+    tax_units:
+      tax_unit:
+        members: [head, spouse]
+        adjusted_gross_income: 60_000
+        filing_status: JOINT
+    households:
+      household:
+        members: [head, spouse]
+        state_code: HI
+  output:
+    hi_act_115_rebate: 0

policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_credit_start_dates.yaml

@@ -0,0 +1,146 @@
+# A single filer, age 30, with $8,000 of wages in each year around the
+# credits' start dates. The federal EITC is on its plateau in each year
+# tested (single, no qualifying child), and the Hawaii food/excise credit is
+# $100 for federal AGI of $5,000 to $10,000 (Form N-311, 2017-2022).
+# Hawaii's EITC applies to taxable years beginning after December 31, 2017
+# (Act 107, SLH 2017; 2018 Form N-356 instructions, p.2). Act 115 (SLH 2022)
+# refunds went only to filers of a 2021 Form N-11 (DOTAX Announcement
+# 2022-03, p.2).
+- name: Case 1, no Hawaii EITC or Act 115 refund in 2017.
+  period: 2017
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    eitc: 510
+    hi_eitc_potential: 0
+    hi_non_refundable_credits: 0
+    hi_act_115_rebate: 0
+    hi_food_excise_credit: 100
+    hi_refundable_credits: 100
+    # Taxable income: 8,000 - 2,200 standard deduction - 1,144 exemption
+    # = 4,656. Tax: 1.4% * 2,400 + 3.2% * 2,256 = 105.792.
+    # 105.792 - 0 nonrefundable - 100 refundable = 5.792.
+    hi_income_tax: 5.792
+  absolute_error_margin: 0.01
+
+- name: Case 2, Hawaii EITC starts in 2018 and no Act 115 refund.
+  period: 2018
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    eitc: 519
+    # 20% * 519
+    hi_eitc_potential: 103.8
+    hi_act_115_rebate: 0
+    hi_refundable_credits: 100
+  absolute_error_margin: 0.01
+
+- name: Case 3, Hawaii EITC and no Act 115 refund in 2020.
+  period: 2020
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    eitc: 538
+    # 20% * 538
+    hi_eitc_potential: 107.6
+    hi_act_115_rebate: 0
+    hi_refundable_credits: 100
+  absolute_error_margin: 0.01
+
+- name: Case 4, Act 115 refund for 2021.
+  period: 2021
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    # 15.3% * 8,000 under the 2021 phase-in.
+    eitc: 1_224
+    # 20% * 1,224
+    hi_eitc_potential: 244.8
+    # One exemption * $300 for federal AGI under $100,000.
+    hi_act_115_rebate: 300
+    # 100 food/excise + 300 Act 115
+    hi_refundable_credits: 400
+  absolute_error_margin: 0.01
+
+- name: Case 5, no Act 115 refund for 2022.
+  period: 2022
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    eitc: 560
+    # 20% * 560
+    hi_eitc_potential: 112
+    hi_act_115_rebate: 0
+    hi_refundable_credits: 100
+  absolute_error_margin: 0.01
+
+- name: Case 6, no Hawaii EITC or Act 115 refund in 2016.
+  period: 2016
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: HI
+  output:
+    hi_eitc_potential: 0
+    hi_non_refundable_credits: 0
+    hi_act_115_rebate: 0
+    hi_refundable_credits: 100
+  absolute_error_margin: 0.01