Add Rhode Island 2027 tax updates

changelog.d/ri-2027-tax-updates.added.md

@@ -0,0 +1 @@
+Add Rhode Island's 2027 Child Tax Credit, high-income surtax, and Social Security subtraction age-gate removal.

policyengine_us/parameters/gov/states/ri/tax/income/agi/subtractions/social_security/limit/birth_year.yaml

@@ -6,6 +6,8 @@ values:
   2023-01-01: 1957 # 1957-07-01
   2024-01-01: 1958 # 1958-05-01
   2025-01-01: 1959 # 1959-03-01
+  2026-01-01: 1960 # 1960-01-01
+  2027-01-01: 9999 # Age condition removed under 2026 R.I. H 7127 Substitute A.
 
 metadata:
   unit: year
@@ -27,3 +29,5 @@ metadata:
     # full or unreduced social security retirement benefits"
     - title: R.I. Gen. Laws § 44-30-12 (c), (8), (i), (A)
       href: http://webserver.rilin.state.ri.us/Statutes/title44/44-30/44-30-12.HTM
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 5, § 44-30-12(c)(8)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=For%20the%20tax%20years%20beginning%20on%20or%20after%20January%201%2C%202027

policyengine_us/parameters/gov/states/ri/tax/income/agi/subtractions/taxable_retirement_income/birth_year.yaml

@@ -0,0 +1,27 @@
+description: Rhode Island allows taxable retirement income subtractions for taxpayers or spouses born on or before this year.
+
+values:
+  2021-01-01: 1955 # 1955-11-01
+  2022-01-01: 1956 # 1956-09-01
+  2023-01-01: 1957 # 1957-07-01
+  2024-01-01: 1958 # 1958-05-01
+  2025-01-01: 1959 # 1959-03-01
+  2026-01-01: 1960 # 1960-01-01
+
+metadata:
+  unit: year
+  period: year
+  label: Rhode Island taxable retirement income subtraction birth year threshold
+  reference:
+    - title: 2025 RI-1040 Instructions page I-10
+      href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-12/2025%201040R%20Instructions%20122025.pdf#page=10
+    - title: Rhode Island 2024 RI-1040 Instructions
+      href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2024-12/2024%201040R%20Instructions%20-%20updated%2012092024.pdf#page=9
+    - title: Rhode Island 2023 RI-1040 Instructions
+      href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2023-12/2023%201040R%20Instructions.pdf#page=9
+    - title: Rhode Island 2022 RI-1040 Instructions
+      href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2022-12/2022%20NR%20Instructions_v4_w.pdf#page=11
+    - title: Rhode Island 2021 RI-1040 Instructions
+      href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2021-12/2021-1040r-instructions.pdf#page=8
+    - title: R.I. Gen. Laws § 44-30-12 (c), (9)
+      href: http://webserver.rilin.state.ri.us/Statutes/title44/44-30/44-30-12.HTM

policyengine_us/parameters/gov/states/ri/tax/income/credits/ctc/age_limit.yaml

@@ -0,0 +1,10 @@
+description: Rhode Island limits child age to this threshold under the Child Tax Credit program.
+values:
+  2027-01-01: 18
+metadata:
+  unit: year
+  period: year
+  label: Rhode Island Child Tax Credit age limit
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104(a)(1)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=%E2%80%9CChild%E2%80%9D%20means%20an%20individual%20who%20is%20eighteen%20years%20of%20age%20or%20under

policyengine_us/parameters/gov/states/ri/tax/income/credits/ctc/amount.yaml

@@ -0,0 +1,16 @@
+description: Rhode Island provides this amount per eligible child under the Child Tax Credit program.
+values:
+  2026-01-01: 0
+  2027-01-01: 330
+metadata:
+  unit: currency-USD
+  period: year
+  label: Rhode Island Child Tax Credit amount
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104(b)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=the%20amount%20of%20three%20hundred%20thirty%20dollars%20(%24330)

policyengine_us/parameters/gov/states/ri/tax/income/credits/ctc/phase_out/increment.yaml

@@ -0,0 +1,53 @@
+description: Rhode Island sets this adjusted gross income increment under the Child Tax Credit program.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Rhode Island Child Tax Credit phase-out increment
+  breakdown:
+    - filing_status
+  breakdown_label:
+    - Filing status
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104(c)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=two%20thousand%20eight%20hundred%20seventy-five%20(%242%2C875)
+
+SINGLE:
+  values:
+    2027-01-01: 2_875
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+JOINT:
+  values:
+    2027-01-01: 3_590
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+SEPARATE:
+  values:
+    2027-01-01: 2_875
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+HEAD_OF_HOUSEHOLD:
+  values:
+    2027-01-01: 2_875
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+SURVIVING_SPOUSE:
+  values:
+    2027-01-01: 2_875
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5

policyengine_us/parameters/gov/states/ri/tax/income/credits/ctc/phase_out/rate.yaml

@@ -0,0 +1,10 @@
+description: Rhode Island sets this reduction percentage under the Child Tax Credit program.
+values:
+  2027-01-01: 0.2
+metadata:
+  unit: /1
+  period: year
+  label: Rhode Island Child Tax Credit phase-out rate
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104(c)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=applicable%20percentage%E2%80%9D%20for%20purposes%20of%20this%20subsection%20means%20twenty%20(20)

policyengine_us/parameters/gov/states/ri/tax/income/credits/ctc/phase_out/threshold.yaml

@@ -0,0 +1,53 @@
+description: Rhode Island sets this adjusted gross income threshold under the Child Tax Credit program.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Rhode Island Child Tax Credit phase-out threshold
+  breakdown:
+    - filing_status
+  breakdown_label:
+    - Filing status
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104(c)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=exceeds%20eighty-eight%20thousand%20five%20hundred%20dollars
+
+SINGLE:
+  values:
+    2027-01-01: 88_500
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+JOINT:
+  values:
+    2027-01-01: 110_640
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+SEPARATE:
+  values:
+    2027-01-01: 88_500
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+HEAD_OF_HOUSEHOLD:
+  values:
+    2027-01-01: 88_500
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+SURVIVING_SPOUSE:
+  values:
+    2027-01-01: 88_500
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5

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

@@ -7,6 +7,10 @@ values:
   2022-01-01:
     - ri_eitc
     - ri_property_tax_credit
+  2027-01-01:
+    - ri_eitc
+    - ri_property_tax_credit
+    - ri_ctc
 
 metadata:
   unit: list
@@ -20,3 +24,13 @@ metadata:
     # Child tax rebate source
     - title: R.I. Gen. Law §44-30-103. Child Tax Rebates.
       href: https://tax.ri.gov/sites/g/files/xkgbur541/files/2022-08/H7123Aaa_CTR_0.pdf#page=1
+    # The budget bill establishes the CTC amount, eligibility, and phase-out;
+    # the budget report and signing press release describe the enacted CTC as refundable.
+    - title: Rhode Island Senate Fiscal Office FY2027 Budget as Passed by House Finance, page 8
+      href: https://www.rilegislature.gov/sfiscal/Budget%20Analyses/FY2027%20SFO%20Budget%20as%20passed%20by%20House%20Finance.pdf#page=8
+    - title: Governor McKee signs fiscal year 2027 budget advancing key affordability for all Rhode Islanders
+      href: https://governor.ri.gov/press-releases/governor-mckee-signs-fiscal-year-2027-budget-advancing-key-affordability-all
+    - title: Sen. Vargas lauds child tax credit in state budget bill
+      href: https://www.rilegislature.gov/pressrelease/_layouts/15/ril.pressrelease.inputform/DisplayForm.aspx?List=c8baae31-3c10-431c-8dcd-9dbbe21ce3e9&ID=376675
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 4, § 44-30-104
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=44-30-104.%20Child%20Tax%20Credit

policyengine_us/parameters/gov/states/ri/tax/income/high_earner_tax/rate.yaml

@@ -0,0 +1,13 @@
+description: Rhode Island sets this high-income surtax percentage under the personal income tax.
+values:
+  2026-01-01: 0
+  2027-01-01: 0.01
+  2028-01-01: 0.02
+  2029-01-01: 0.03
+metadata:
+  unit: /1
+  period: year
+  label: Rhode Island high-income surtax rate
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 5, § 44-30-2.6(c)(3)(A)(I)(2)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=High-income%20surtax

policyengine_us/parameters/gov/states/ri/tax/income/high_earner_tax/threshold.yaml

@@ -0,0 +1,15 @@
+description: Rhode Island sets this taxable income threshold under the high-income surtax.
+values:
+  2027-01-01: 1_000_000 # 2027 value is not indexed; uprating applies from 2028.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Rhode Island high-income surtax threshold
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 50
+  reference:
+    - title: 2026 R.I. H 7127 Substitute A as amended, Article 6, Section 5, § 44-30-2.6(c)(3)(A)(I)(2)
+      href: https://webserver.rilegislature.gov/BillText/BillText26/HouseText26/H7127Aaa.html#:~:text=Rhode%20Island%20taxable%20income%20over%20one%20million%20dollars

policyengine_us/tests/policy/baseline/gov/states/ri/tax/income/agi/subtractions/social_security/ri_social_security_modification.yaml

@@ -109,3 +109,25 @@
         ri_social_security_modification_eligible: true
   output:
     ri_social_security_modification: 96_000
+
+- name: Under full retirement age receives social security modification in 2027
+  absolute_error_margin: 0.01
+  period: 2027
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        social_security: 20_000
+        taxable_social_security: 10_000
+        birth_year: 1990
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 70_000
+    households:
+      household:
+        members: [person1]
+        state_code: RI
+  output:
+    ri_social_security_modification: 10_000