Pause Colorado's family affordability credit in 2026 and leave Idaho's expired child tax credit out of 2026 totals

changelog.d/credits-2026-id-ctc-co-fatc.fixed.md

@@ -0,0 +1 @@
+Remove Idaho's expired child tax credit from state child tax credit totals after 2025, preserve those totals under Idaho revival reforms, and pause Colorado's family affordability tax credit from 2026.

policyengine_us/parameters/gov/states/co/tax/income/credits/family_affordability/amount.yaml

@@ -2,14 +2,23 @@ description: Colorado provides this family affordability tax credit base amount
 values:
   2024-01-01: 3_200
   2025-01-01: 3_273
+  # C.R.S. 39-22-130(6)(f): no credit is allowed below the 3% adjustment factor.
+  # LCS R26-322 confirms the credit is unavailable for 2026 and projects
+  # adjustment factors of 2.78% for 2027 and 2.71% for 2028, also below 3%.
+  # The amount stays at zero from 2026 pending a later determination.
+  2026-01-01: 0
 metadata:
   period: year
   unit: currency-USD
   label: Colorado family affordability tax credit young child amount
   reference:
-    - title: Colorado General Assembly House Bill 24-1311 Family Affordability Tax Credit
-      href: https://leg.colorado.gov/bills/hb24-1311
     - title: 2024 Colorado Child Tax Credit Instructions, Section C
       href: https://tax.colorado.gov/sites/tax/files/documents/DR0104CN_2024.pdf#page=3
-    - title: 2025 Colorado Individual Tax Filing Guide 104 Book, Section C
-      href: https://tax.colorado.gov/sites/tax/files/documents/Book104_2025.pdf#page=27
+    - title: 2025 Colorado Child Tax Credit Instructions, Section C
+      href: https://tax.colorado.gov/sites/tax/files/documents/DR_0104CN_2025.pdf#page=3
+    - title: "House Bill 24-1311, C.R.S. 39-22-130(6), (6)(f) #page 7,10"
+      href: https://leg.colorado.gov/sites/default/files/2024a_1311_signed.pdf#page=7
+    - title: Legislative Council Staff R26-322, Treatment of Tax Credit Triggers in Fiscal Notes
+      href: https://content.leg.colorado.gov/sites/default/files/R26-322_Treatment%20of%20Tax%20Credit%20Triggers%20in%20Fiscal%20Notes%20March%202026.pdf#page=3
+    - title: Colorado Department of Revenue, Child Tax Credit and EITC FAQs (tax year 2026 pause)
+      href: https://tax.colorado.gov/ctc-eitc-faqs

policyengine_us/parameters/gov/states/household/state_ctcs.yaml

@@ -74,14 +74,14 @@ values:
     - or_ctc
     - ut_ctc
     - vt_ctc
+  # Idaho's child tax credit ends after 2025 (Idaho Code 63-3029L(1)).
   2026-01-01:
     - az_dependent_tax_credit
     - ca_yctc
     - co_ctc
     - co_family_affordability_credit
     - dc_ctc
     - ga_ctc
-    - id_ctc
     - il_ctc
     - ma_child_and_family_credit_or_dependent_care_credit
     - md_ctc
@@ -103,7 +103,6 @@ values:
     - co_family_affordability_credit
     - dc_ctc
     - ga_ctc
-    - id_ctc
     - il_ctc
     - ma_child_and_family_credit_or_dependent_care_credit
     - md_ctc

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

@@ -15,4 +15,4 @@ metadata:
     - title: Idaho Individual Income Tax Instructions Packet 2024
       href: https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_10-23-2024.pdf#page=10
     - title: Idaho Individual Income Tax Instructions Packet 2025
-      href: https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf
+      href: https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf#page=12

policyengine_us/reforms/states/id/ctc/id_ctc_reform.py

@@ -24,6 +24,33 @@ def _first_true_instant(nodes, default):
     return min(candidates)
 
 
+def _restore_id_ctc_reporting(parameters, revival_start):
+    """Include the revived worksheet amount without erasing later credits."""
+    state_ctcs = parameters.gov.states.household.state_ctcs
+    revival_stop = instant("2100-12-31")
+    if revival_start > revival_stop:
+        return
+
+    # Snapshot every dated list before update replaces overlapping intervals.
+    # In particular, the 2027 list adds Rhode Island's credit independently.
+    dated_lists = [(revival_start, list(state_ctcs(revival_start)))]
+    dated_lists.extend(
+        (instant(value.instant_str), list(value.value))
+        for value in state_ctcs.values_list
+        if str(revival_start) < value.instant_str <= str(revival_stop)
+    )
+    dated_lists.sort(key=lambda entry: entry[0])
+    for index, (start, credits) in enumerate(dated_lists):
+        if "id_ctc" in credits:
+            continue
+        stop = (
+            dated_lists[index + 1][0].offset(-1, "day")
+            if index + 1 < len(dated_lists)
+            else revival_stop
+        )
+        state_ctcs.update(start=start, stop=stop, value=credits + ["id_ctc"])
+
+
 def create_id_ctc() -> Reform:
     class id_refundable_ctc(Variable):
         value_type = float
@@ -73,6 +100,7 @@ def modify_parameters(parameters):
         # Never revive before the baseline drop date: id_ctc is already in the
         # list through 2025, so revival only matters from 2026 onward.
         revival_start = max(activation, baseline_drop)
+        _restore_id_ctc_reporting(parameters, revival_start)
         non_refundable = parameters.gov.states.id.tax.income.credits.non_refundable
         current_non_refundable = non_refundable(revival_start)
         if "id_ctc" not in current_non_refundable:

policyengine_us/reforms/states/id/s1450/s1450.py

@@ -3,6 +3,9 @@
 from policyengine_core.reforms import Reform
 
 from policyengine_us.model_api import *
+from policyengine_us.reforms.states.id.ctc.id_ctc_reform import (
+    _restore_id_ctc_reporting,
+)
 
 
 def create_id_s1450() -> Reform:
@@ -14,6 +17,7 @@ def modify_parameters(parameters: ParameterNode) -> ParameterNode:
             stop=instant("2100-12-31"),
             value=["id_ctc"],
         )
+        _restore_id_ctc_reporting(parameters, instant("2026-01-01"))
         return parameters
 
     class reform(Reform):

policyengine_us/tests/policy/baseline/gov/states/co/tax/income/credits/family_affordability/co_family_affordability_credit.yaml

@@ -118,3 +118,45 @@
   output:
     co_family_affordability_credit: [0, 0, 0]
     co_refundable_credits: 0
+
+- name: Colorado family affordability credit in 2025
+  period: 2025
+  input:
+    people:
+      head:
+        age: 30
+      child:
+        age: 1
+    tax_units:
+      tax_unit:
+        members: [head, child]
+        adjusted_gross_income: 0
+    households:
+      household:
+        members: [head, child]
+        state_code: CO
+  output:
+    co_family_affordability_credit: [0, 3_273]
+
+- name: Colorado pauses the family affordability credit in 2026
+  period: 2026
+  input:
+    people:
+      head:
+        age: 30
+      child:
+        age: 1
+      older_child:
+        age: 10
+    tax_units:
+      tax_unit:
+        members: [head, child, older_child]
+        adjusted_gross_income: 0
+    households:
+      household:
+        members: [head, child, older_child]
+        state_code: CO
+  output:
+    # C.R.S. 39-22-130(6)(f): no credit when forecast revenue growth is below
+    # three percent; the Department of Revenue pauses it for tax year 2026.
+    co_family_affordability_credit: [0, 0, 0]

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/credits/id_ctc.yaml

@@ -126,3 +126,24 @@
   output:
     # 5 children under 17 * $205
     id_ctc: 1025
+
+- name: No Idaho child tax credit after 2025 in the credit list or the state child tax credit totals
+  period: 2026
+  input:
+    people:
+      head:
+        age: 30
+      child:
+        age: 5
+    tax_units:
+      tax_unit:
+        members: [head, child]
+    households:
+      household:
+        members: [head, child]
+        state_code: ID
+  output:
+    # Idaho Code 63-3029L(1): taxable years beginning before January 1, 2026.
+    # id_ctc stays the worksheet amount a reform can revive.
+    id_non_refundable_credits: 0
+    taxsim_state_ctc: 0

policyengine_us/tests/policy/baseline/partners/analytics_coverage/edge_cases/state/co/eitc_ctc.yaml

@@ -139,6 +139,6 @@
         # FAC mid-reduction (HOH threshold 16,000): excess 24,000 ->
         # ceil(24,000 / 5,000) = 5 increments x 6.875% = 34.375% reduction;
         # 3,273 x 1.0 (age under 6) x 0.65625 = 2,147.91.
-        co_family_affordability_credit: 2_147.91
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0

policyengine_us/tests/policy/baseline/partners/analytics_coverage/edge_cases/state/co/family_affordability_credit.yaml

@@ -136,12 +136,12 @@
       child1:
         # AGI 10,000 < 26,000 joint threshold -> no reduction;
         # age 5 -> 3,273 x 1.0 = 3,273.
-        co_family_affordability_credit: 3_273.0
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
       child2:
         # Age 6 -> 3,273 x 0.75 = 2,454.75.
-        co_family_affordability_credit: 2_454.75
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
       child3:
@@ -245,7 +245,7 @@
       child1:
         # AGI exactly at the 26,000 joint threshold -> excess 0 -> full
         # 3,273 x 1.0 (age under 6); $1 more starts the reduction.
-        co_family_affordability_credit: 3_273.0
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
 - name: co_family_affordability_joint_agi_26k_plus_1_first_increment (co)
@@ -343,7 +343,7 @@
       child1:
         # Excess 1 over the 26,000 joint threshold -> ceil(1/5,000) = 1
         # increment x 6.875%; 3,273 x 0.93125 = 3,047.98.
-        co_family_affordability_credit: 3_047.98
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
 - name: co_family_affordability_hoh_agi_90k_fully_phased_out (co)

policyengine_us/tests/policy/baseline/partners/analytics_coverage/edge_cases/state/co/tax_credits_composition.yaml

@@ -98,12 +98,12 @@
       child1:
         # FAC: excess 4,000 over 16,000 HOH threshold -> 1 increment x 6.875%;
         # age 8 -> 3,273 x 0.75 x 0.93125 = 2,285.99.
-        co_family_affordability_credit: 2_285.99
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
       child2:
         # Age 3 -> 3,273 x 1.0 x 0.93125 = 3,047.98.
-        co_family_affordability_credit: 3_047.98
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
 - name: statetax_size_4_couple_2_children (co)
@@ -220,11 +220,11 @@
       child1:
         # FAC joint: AGI 20,000 < 26,000 threshold -> no reduction;
         # age 8 -> 3,273 x 0.75 = 2,454.75.
-        co_family_affordability_credit: 2_454.75
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0
       child2:
         # Age 3 -> full 3,273 (contrast with the HOH case at the same AGI).
-        co_family_affordability_credit: 3_273.0
+        co_family_affordability_credit: 0
         co_state_supplement: 0.0
         co_oap: 0.0

policyengine_us/tests/policy/baseline/partners/analytics_coverage/signatures/co.yaml

@@ -183,7 +183,7 @@
         wic_category: 5
       child1:
         co_chp_eligible: false
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -195,7 +195,7 @@
         wic_category: 5
       child2:
         co_chp_eligible: false
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -381,7 +381,7 @@
         wic_category: 5
       child1:
         co_chp_eligible: false
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -393,7 +393,7 @@
         wic_category: 5
       child2:
         co_chp_eligible: false
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -582,7 +582,7 @@
         wic_category: 5
       child1:
         co_chp_eligible: false
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -594,7 +594,7 @@
         wic_category: 5
       child2:
         co_chp_eligible: false
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -703,9 +703,9 @@
       spouse:
         co_family_affordability_credit: 0.0
       child1:
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
       child2:
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
 - name: signature_108 (2 reqs)
   period: 2026
   absolute_error_margin: 0.1
@@ -871,7 +871,7 @@
         wic_category: 5
       child1:
         co_chp_eligible: false
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -882,7 +882,7 @@
         wic_category: 5
       child2:
         co_chp_eligible: false
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -1071,7 +1071,7 @@
         wic_category: 5
       child1:
         co_chp_eligible: false
-        co_family_affordability_credit: 1610.93
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0
@@ -1083,7 +1083,7 @@
         wic_category: 5
       child2:
         co_chp_eligible: false
-        co_family_affordability_credit: 2147.91
+        co_family_affordability_credit: 0
         co_oap: 0.0
         co_state_supplement: 0.0
         commodity_supplemental_food_program: 0.0

policyengine_us/tests/policy/contrib/states/id/ctc/id_ctc_reform.yaml

@@ -15,6 +15,7 @@
     # id_ctc still computes 2 * 205 = 410 as a worksheet amount, but it is not
     # in the 2026 nonrefundable list, so no credit is applied.
     id_non_refundable_credits: 0
+    taxsim_state_ctc: 0
 
 - name: Revival applies the nonrefundable CTC capped at liability
   period: 2026
@@ -29,6 +30,7 @@
     # Revived list is [id_ctc]; applied = min(410, 1000) = 410. Refundable off.
     id_non_refundable_credits: 410
     id_refundable_ctc: 0
+    taxsim_state_ctc: 410
 
 - name: Refundable option pays unused CTC to a no-liability family
   period: 2026
@@ -44,6 +46,7 @@
     # potential 410, nonrefundable 0 (no liability), unused 410,
     # cap = 205 * 2 = 410 -> fully refundable.
     id_refundable_ctc: 410
+    taxsim_state_ctc: 410
 
 - name: Refundable cap override composes
   period: 2026
@@ -59,6 +62,7 @@
   output:
     # refund = min(410 unused, 100 * 2) = 200.
     id_refundable_ctc: 200
+    taxsim_state_ctc: 410
 
 - name: Baseline CTC amount override composes with the revival
   period: 2026
@@ -73,3 +77,4 @@
   output:
     id_ctc: 600
     id_non_refundable_credits: 600
+    taxsim_state_ctc: 600