Count refundable credits received in Montana's elderly homeowner/renter credit income

changelog.d/fix-mt-ehrc-dependent-adjustments.fixed.md

@@ -0,0 +1 @@
+Montana elderly homeowner/renter credit household income includes dependents' own allowable non-loss adjustments to federal gross income.

changelog.d/fix-mt-ehrc-household-member-income.fixed.md

@@ -0,0 +1 @@
+Count household members' income in the Montana elderly homeowner/renter credit: a tax unit dependent's gross income, and the income of household members who file their own returns.

changelog.d/fix-mt-ehrc-refundable-credits.fixed.md

@@ -0,0 +1 @@
+Count federal refundable credits, the elderly homeowner/renter credit received during the year, and actual property tax rebate receipts (including in 2023) in Montana's elderly homeowner/renter credit gross household income; date the Montana property tax rebate ($400 for tax year 2024, none after).

changelog.d/fix-mt-federal-tax-zero-allocation.fixed.md

@@ -0,0 +1 @@
+Preserve zero Montana federal income tax deduction allocation when neither filer has positive federal adjusted gross income.

changelog.d/fix-mt-separate-filing-allocations.fixed.md

@@ -0,0 +1 @@
+Montana's federal income tax deduction for spouses filing separately on the same form now attributes federal tax to the spouse who earned the income and caps each spouse at 5,000; the child and dependent care expense deduction phases out on the couple's combined Montana AGI and is halved only for spouses filing separately on the same form; and the elderly homeowner/renter credit counts income without regard to losses.

policyengine_us/parameters/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/gross_income_sources.yaml

@@ -4,12 +4,28 @@ metadata:
   period: year
   label: Montana elderly homeowner or renter credit gross income sources
   reference:
+  - title: HB191 (2021), section 1(9), all nontaxable income
+    href: https://archive.legmt.gov/bills/2021/HB0199/HB0191_X.pdf#page=2
   - title: Montana 2022 Form2 Individual Income Tax Instructions, Page47, Gross Household Income
     href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2022_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47
   - title: 2022 Montana Code Annotated, Title 15, Chapter 30, Part 23, 15-30-2337 (9)
     href: https://law.justia.com/codes/montana/2022/title-15/chapter-30/part-23/section-15-30-2337/
   - title: 2024 Montana Individual Income Tax Return
     href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=46
+  - title: ARM 42.4.301(2) as in effect 8/20/2004 to 11/9/2017 ("elderly homeowner/renter credit refunds received")
+    href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/788508cc-8418-41c8-926d-3dfb11af3fd6
+  - title: ARM 42.4.301(2) as in effect 11/10/2017 to 9/6/2024 ("federal refundable credits received" and "any state refundable credits received")
+    href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/297c7a8d-f6f4-4b70-a7b7-fe1cedee53e7
+  - title: ARM 42.4.301(2) as in effect from 9/7/2024 ("federal refundable tax credits received" and "any state refundable tax credits received")
+    href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/768c8344-24ee-4950-9d5e-9d8fc97ec0f7
+  - title: 2017 Montana Form 2EC instructions, Gross Household Income Worksheet, item 4 ("Any federal or state refundable credits including the 2EC credit")
+    href: https://taxsim.nber.org/historical_state_tax_forms/MT/2017/Form%202%202017%20Booklet.pdf#page=65
+  - title: 2023 Montana Form 2 instructions, Elderly Homeowner/Renter Credit Schedule, line 7, refundable credits received
+    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2023_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=51
+  - title: 2024 Montana Form 2 instructions, Schedule 2EC, line 8, refundable credits received
+    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47
+  - title: 2025 Montana Form 2 instructions, Schedule 2EC, line 8, refundable credits received
+    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=45
 
 values:
   2009-01-01:
@@ -27,8 +43,45 @@ values:
     - child_support_received # § 15-30-2337(9)(a)(iv) – support money
     - strike_benefits # § 15-30-2337(9)(a)(v) – nontaxable strike benefits
     - general_assistance # § 15-30-2337(9)(a)(vi) – cash public assistance
-    - mt_refundable_credits_before_renter_credit # Line 7: Refundable credits
+    # Refundable credits received (2023 schedule line 7, Schedule 2EC line 8
+    # from 2024): Montana's refundable credits other than this credit,
+    # and this credit as received during the year (ARM 42.4.301(2)(c)).
+    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_received
+  # ARM 42.4.301(2)(b), amended effective 11/10/2017, counts "federal
+  # refundable credits received"; the 2017 Form 2EC worksheet counts "any
+  # federal or state refundable credits".
+  2017-01-01:
+    - adjusted_gross_income_person
+    - tax_exempt_interest_income
+    - tax_exempt_ira_distributions
+    - tax_exempt_pension_income
+    - veterans_benefits
+    - child_support_received
+    - strike_benefits
+    - general_assistance
+    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_received
+    - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
+  # Actual rebate receipts count under the statutory nontaxable-income
+  # definition and ARM 42.4.301(2)(c). The 2023 form's illustrative list
+  # establishes no exemption for 2022 rebates received in 2023. The
+  # 2024/2025 schedules explicitly name the prior property-year rebates.
+  2023-01-01:
+    - adjusted_gross_income_person
+    - tax_exempt_interest_income
+    - tax_exempt_ira_distributions
+    - tax_exempt_pension_income
+    - veterans_benefits
+    - child_support_received
+    - strike_benefits
+    - general_assistance
+    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_received
+    - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
+    - mt_elderly_homeowner_or_renter_credit_property_tax_rebate_received
 # Social Security under § 15-30-2337(9)(a)(viii) is added separately in
 # mt_elderly_homeowner_or_renter_credit_gross_household_income.py because the
 # untaxed portion is computed as social_security - taxable_social_security.
-# The renter credit itself is excluded to avoid a circular reference.
+# This year's elderly homeowner/renter credit is excluded to avoid a circular
+# reference; the credit received during the year counts instead.

policyengine_us/parameters/gov/states/mt/tax/income/credits/rebate/property/amount.yaml

@@ -1,7 +1,13 @@
 description: Montana provides the following property tax rebate amount.
 values:
+  # Tax years 2022 and 2023: $500 (HB 222, Ch. 47, L. 2023) plus the $175
+  # bonus (HB 816, Ch. 764, L. 2023).
   2022-01-01: 675
-  # The property tax rebate was only offered in the 2022 and 2023 tax years
+  # Tax year 2024: $400 (SB 542, Ch. 767, L. 2025, sec. 3).
+  2024-01-01: 400
+  # No rebate has been enacted for tax year 2025 or later; the tax year 2024
+  # rebate terminates June 30, 2026 (Ch. 767, L. 2025, sec. 29(2)).
+  2025-01-01: 0
 metadata:
   period: year
   unit: currency-USD
@@ -16,3 +22,9 @@ metadata:
       href: https://docs.legmt.gov/download-ticket?ticketId=ff6faf83-515f-4472-a079-c41a4a75e827#page=1
     - title: 2024 Montana Form 2 Instructions
       href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=3
+    - title: Montana Department of Revenue, Income tax and property tax rebate report, May 2024 (maximum rebate $675 in each of tax years 2022 and 2023)
+      href: https://archive.legmt.gov/content/Committees/Interim/2023-2024/Revenue/Meetings/May-2024/5.1-DOR-rebate-report.pdf#page=13
+    - title: 2025 Montana Session Laws, Chapter 767 (SB 542), sec. 3(1), property tax rebate for tax year 2024
+      href: https://archive.legmt.gov/content/Sessions/69th/Contractor_index/CH0767.pdf#page=2
+    - title: 2025 Montana Session Laws, Chapter 767 (SB 542), sec. 29(2), termination of the tax year 2024 rebate
+      href: https://archive.legmt.gov/content/Sessions/69th/Contractor_index/CH0767.pdf#page=44

policyengine_us/parameters/gov/states/mt/tax/income/deductions/itemized/misc_deductions.yaml

@@ -1,8 +1,11 @@
 description: Montana counts these sources as miscellaneous deductions. 
+# The child and dependent care expense deduction is also a miscellaneous
+# deduction (Form 2 Itemized Deductions Schedule, line 14). It is added
+# separately because its income limit uses the return's own Montana AGI, which
+# differs between a joint return and separate columns (Form 2441-M line 3).
 values:
   2021-01-01:
-    - mt_child_dependent_care_expense_deduction  
-    - casualty_loss_deduction  
+    - casualty_loss_deduction
   2024-01-01: []
 
 metadata:

policyengine_us/tests/policy/baseline/gov/states/household/state_property_tax_credits/mt_property_tax_rebate_in_aggregate.yaml

@@ -24,3 +24,45 @@
     # contributor to the aggregate is the $675 property tax rebate.
     mt_property_tax_rebate: 675
     taxsim_state_property_tax_credit: 675
+
+- name: The tax year 2024 MT property tax rebate of 400 flows into the aggregate
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      head:
+        age: 40
+        employment_income: 50_000
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [head]
+    households:
+      household:
+        members: [head]
+        state_code: MT
+  output:
+    # Ch. 767, L. 2025 (SB 542), sec. 3(1): $400 for tax year 2024. Before
+    # the rebate amount was dated, the model carried 675 into 2024.
+    mt_property_tax_rebate: 400
+    taxsim_state_property_tax_credit: 400
+
+- name: No MT property tax rebate in the aggregate for tax year 2025
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      head:
+        age: 40
+        employment_income: 50_000
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [head]
+    households:
+      household:
+        members: [head]
+        state_code: MT
+  output:
+    mt_property_tax_rebate: 0
+    taxsim_state_property_tax_credit: 0