Limit Alaska's dividend to the statute's immigration statuses, and add a take-up input

changelog.d/ak-pfd-receipt.added.md

@@ -0,0 +1 @@
+Limit the Alaska Permanent Fund Dividend and energy relief to the immigration statuses in AS 43.23.005(a)(5), and add a default-true take-up input for residents Alaska does not pay.

docs/validation/alaska-pfd.md

@@ -1,11 +1,16 @@
 # Alaska Permanent Fund Dividend in model comparisons
 
 PolicyEngine automatically calculates `ak_permanent_fund_dividend` and
-`ak_energy_relief` for each person whose household is in Alaska. These amounts
-are calculated benefits, rather than imputed income or fixed default inputs.
-Current Alaska residence is an eligibility proxy: the model does not check an
-application, prior-year residence, or actual receipt. Supplying wages and other
-known income does not disable either calculation.
+`ak_energy_relief` for each person who lives in Alaska, holds one of the
+immigration statuses in the dividend statute, and takes up the dividend. These
+amounts are calculated benefits, rather than imputed income or fixed default
+inputs. PolicyEngine cannot resolve the statute's other tests from its inputs:
+an application, residence on the application date and during all of the prior
+calendar year, 72 consecutive hours of presence in the prior two years,
+allowable absences, Selective Service compliance, or a felony sentence or
+conviction-based incarceration during that year. `is_incarcerated` records no
+conviction and does not tie to that year, so it does not affect the dividend.
+Supplying wages and other known income does not disable either calculation.
 
 The regular PFD is included in federal gross income for nondependent people.
 A dependent child's PFD is not automatically added to the parent's adjusted
@@ -14,13 +19,106 @@ status; supply explicit roles or dependent status when constructing a household.
 The regular dividend appears on [2022 Schedule 1, line
 8g](https://www.irs.gov/pub/irs-prior/f1040s1--2022.pdf#page=1).
 
+## Who receives the dividend
+
+`ak_permanent_fund_dividend_eligible` applies the status test in [AS
+43.23.005(a)(5)](https://www.akleg.gov/basis/statutes.asp#43.23.005): a citizen,
+an alien lawfully admitted for permanent residence, a refugee, or an asylee.
+
+In *State v. Andrade*, 23 P.3d 58 (Alaska 2001), the Alaska Supreme Court held
+that the state phrase does not incorporate the federal definition: an alien must
+be legally present and able to form the intent to remain in Alaska. In [15 AAC
+23.154(a)](https://www.akleg.gov/basis/aac.asp#15.23.154), the Department of
+Revenue applies that reading to a status under 8 U.S.C. 1101 to 1189 that lets
+the alien adopt the United States as their domicile. The department lists
+immigrants, nonimmigrants whose status requires no foreign residence, people on
+indefinite parole, and conditional permanent residents. PolicyEngine has no
+status for the last three, so code them as `LEGAL_PERMANENT_RESIDENT`. Under 15
+AAC 23.154(b) and (d), a person whose status requires a foreign residence fails,
+and a limited-stay nonimmigrant fails the residence test until they take a
+significant step toward a permanent or indefinite status. On its [immigration
+page](https://pfd.alaska.gov/eligibility/immigration), the department's
+Permanent Fund Dividend Division also describes paths for US nationals and
+Compact of Free Association migrants. PolicyEngine has no status for those
+either, so code a person the Division accepts as `LEGAL_PERMANENT_RESIDENT`.
+
+PolicyEngine leaves the other values of `immigration_status` out:
+
+- `PAROLED_ONE_YEAR` does not say a parole runs indefinitely. In [OAH No.
+  25-3180-PFD](https://aws.state.ak.us/OAH/Decision/Display?rec=7350), an
+  administrative law judge upheld the Division's denial of a 2025 dividend to a
+  fixed-term parolee.
+- `TPS` (8 U.S.C. 1254a) and `DEPORTATION_WITHHELD` (8 U.S.C. 1231(b)(3)) fall
+  outside 8 U.S.C. 1101 to 1189, and a person coded `DACA` holds no status under
+  those sections. A TPS holder might meet *Andrade*'s test alone, but the court
+  did not address TPS, and PolicyEngine follows the regulation's range.
+- A person coded `UNDOCUMENTED` lacks the legal presence the court required in
+  *Andrade*.
+- `CUBAN_HAITIAN_ENTRANT` and `CONDITIONAL_ENTRANT` do not say whether the person
+  may adopt the United States as their domicile.
+
+Alaska tests the status a person holds during the qualifying year and on the
+application date (15 AAC 23.154(e)), and under 15 AAC 23.154(c) an alien's
+qualifying year starts on January 1 after the person gains the status.
+PolicyEngine has no status history, so it reads the status for the dividend year.
+
+`takes_up_ak_permanent_fund_dividend_if_eligible` covers the statute's other
+tests and anyone who does not apply. It defaults to true, so a household
+calculation pays every eligible Alaska resident unless an input says otherwise.
+Set it to false for a person Alaska did not pay. Both variables gate
+`ak_energy_relief` as well, because Alaska pays energy relief as part of the
+dividend ([sec. 13, ch. 34, SLA
+2026](https://www.akleg.gov/PDF/34/Bills/HB0263Z.PDF#page=84)).
+
+### Children under one
+
+A child born during the dividend year cannot receive that year's dividend. The
+child fails AS 43.23.005(a)(3), and under (c) only children born in the two
+calendar years before the dividend year qualify. The Division [takes
+applications](https://pfd.alaska.gov/application/applying-for-a-child) for a child
+"born on or before December 31st of the qualifying year." A child born during the
+qualifying year qualifies only under (c), and only through a parent eligible for
+that dividend. `ak_permanent_fund_dividend_eligible` tests the child's own
+status, not a parent's eligibility.
+
+PolicyEngine cannot identify a child born during the dividend year from `age`,
+because a child aged 0 may have a birth date in either calendar year. Populace
+takes `age` from the CPS ASEC, which the Census Bureau [conducts in February,
+March and
+April](https://www.census.gov/topics/income-poverty/poverty/guidance/surveys-programs.html),
+recording each person's age [as of the survey
+date](https://www.census.gov/programs-surveys/cps/technical-documentation/subject-definitions.html).
+In each survey, the Bureau asks about income in the year before, which Populace
+records as `source_year`. Of the people aged 0 in Populace's 2024 Alaska records,
+74% come from the 2023 survey. If each record keeps its own survey date, 92% to
+96% of them have birth dates in 2022 or 2023 and can qualify under (c). If every
+survey fell in the dividend year instead, 71% to 87% could. The ranges run from
+mid-February to mid-April interviews. `birth_year`, which subtracts `age` from
+the year, would put all of them in the dividend year. So the model pays a
+resident aged 0 unless the take-up input says otherwise. Set that input to false
+for a child born during the dividend year, or for a child born during the
+qualifying year who has no eligible parent.
+
+### Recipients in microsimulation
+
+Populace does not set `takes_up_ak_permanent_fund_dividend_if_eligible` yet, so
+the default microsimulation pays everyone who passes the status test: 730,150
+people for 2024, against the [624,489 applications Alaska
+paid](https://pfd.alaska.gov/division-info/summary-of-dividend-applications-payments)
+for that dividend year. The Microcosm data pipeline can close that gap by setting
+the flag from reported receipt and Alaska's paid count; see
+[microcosm issue 1551](https://github.com/PolicyEngine/microcosm/issues/1551).
+The microsimulation has no inputs before its 2024 base year, so it cannot report
+recipients for earlier years.
+
 ## Override calculated payments
 
 Supply either variable as an input on the person to replace its calculated
-amount. To exclude both transfers from a controlled comparison, set both to zero
-for **every person**. Overriding only `ak_permanent_fund_dividend` leaves energy
-relief in place. Overriding only tax-unit AGI leaves the underlying person income
-and benefit amounts unchanged.
+amount. Overriding only `ak_permanent_fund_dividend` leaves energy relief in
+place. To exclude both transfers from a controlled comparison, set
+`takes_up_ak_permanent_fund_dividend_if_eligible` to false or set both payments
+to zero, for **every person**. Overriding only tax-unit AGI leaves the underlying
+person income and benefit amounts unchanged.
 
 This complete situation retains Alaska residence while excluding both payments:
 

policyengine_us/parameters/gov/states/ak/dor/permanent_fund_dividend_eligible_immigration_statuses.yaml

@@ -0,0 +1,42 @@
+description: Alaska limits the Permanent Fund Dividend to people with these immigration statuses.
+
+values:
+  # In State v. Andrade, 23 P.3d 58 (Alaska 2001), the Alaska Supreme Court
+  # held that "lawfully admitted for permanent residence" in AS
+  # 43.23.005(a)(5)(B) does not incorporate the federal definition: an alien
+  # must be legally present and able to form the intent to remain in Alaska.
+  # In 15 AAC 23.154(a), the Department of Revenue applies that reading to a
+  # status under 8 U.S.C. 1101 to 1189 that lets the alien adopt the United
+  # States as their domicile: an immigrant, a nonimmigrant whose status
+  # requires no foreign residence, a person on indefinite parole, or a
+  # conditional permanent resident. PolicyEngine has no status for the last
+  # three, so code them as LEGAL_PERMANENT_RESIDENT.
+  #
+  # PolicyEngine leaves the other statuses out. PAROLED_ONE_YEAR does not say a
+  # parole runs indefinitely, and in OAH No. 25-3180-PFD an administrative law
+  # judge upheld the Permanent Fund Dividend Division's denial of a fixed-term
+  # parolee's dividend. TPS (8 U.S.C. 1254a) and DEPORTATION_WITHHELD (8 U.S.C.
+  # 1231(b)(3)) fall outside 8 U.S.C. 1101 to 1189, and a person coded DACA
+  # holds no status under those sections. A person coded UNDOCUMENTED lacks the
+  # legal presence the court required in Andrade. CUBAN_HAITIAN_ENTRANT and
+  # CONDITIONAL_ENTRANT do not say whether the person may adopt the United
+  # States as their domicile.
+  2015-01-01:
+    - CITIZEN
+    - LEGAL_PERMANENT_RESIDENT
+    - REFUGEE
+    - ASYLEE
+
+metadata:
+  unit: list
+  period: year
+  label: Alaska Permanent Fund Dividend eligible immigration statuses
+  reference:
+    - title: AS 43.23.005(a)(5), Eligibility
+      href: https://www.akleg.gov/basis/statutes.asp#43.23.005
+    - title: 15 AAC 23.154, Eligibility of aliens
+      href: https://www.akleg.gov/basis/aac.asp#15.23.154
+    - title: Alaska Permanent Fund Dividend Division, Immigration - Alien Status and Eligibility for the PFD
+      href: https://pfd.alaska.gov/eligibility/immigration
+    - title: Alaska Office of Administrative Hearings, OAH No. 25-3180-PFD (adopted March 10, 2026)
+      href: https://aws.state.ak.us/OAH/Decision/Display?rec=7350

policyengine_us/tests/policy/baseline/gov/states/ak/dor/ak_energy_relief.yaml

@@ -82,3 +82,73 @@
     state_code: AK
   output:
     ak_energy_relief: 0
+
+- name: Case 13, a resident with no status input gets the 2026 energy relief, since the status defaults to citizen and take-up to true.
+  period: 2026
+  input:
+    state_code: AK
+  output:
+    ak_energy_relief: 200
+
+- name: Case 14, an undocumented Alaska resident gets no energy relief, because Alaska pays it as part of the dividend.
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: UNDOCUMENTED
+  output:
+    ak_energy_relief: 0
+
+- name: Case 15, a resident who does not take up the dividend gets no energy relief.
+  period: 2026
+  input:
+    state_code: AK
+    takes_up_ak_permanent_fund_dividend_if_eligible: false
+  output:
+    ak_energy_relief: 0
+
+- name: Case 16, each person in one household gets energy relief on their own status and take-up.
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      citizen:
+        age: 40
+      undocumented_parent:
+        age: 36
+        immigration_status: UNDOCUMENTED
+      non_applicant:
+        age: 15
+        takes_up_ak_permanent_fund_dividend_if_eligible: false
+      asylee:
+        age: 22
+        immigration_status: ASYLEE
+    households:
+      household:
+        members: [citizen, undocumented_parent, non_applicant, asylee]
+        state_code: AK
+  output:
+    ak_energy_relief: [298.17, 0, 0, 298.17]
+
+- name: Case 17, a supplied zero dividend leaves energy relief in place, since each payment has its own override.
+  period: 2026
+  input:
+    state_code: AK
+    ak_permanent_fund_dividend: 0
+  output:
+    ak_energy_relief: 200
+
+- name: Case 18, an undocumented child gets no energy relief though a citizen parent does.
+  period: 2026
+  input:
+    people:
+      parent:
+        age: 35
+      child:
+        age: 6
+        immigration_status: UNDOCUMENTED
+    households:
+      household:
+        members: [parent, child]
+        state_code: AK
+  output:
+    ak_energy_relief: [200, 0]

policyengine_us/tests/policy/baseline/gov/states/ak/dor/ak_permanent_fund_dividend.yaml

@@ -122,3 +122,142 @@
     ak_energy_relief: 0
     irs_gross_income: 51_000
     adjusted_gross_income: 51_000
+
+- name: Case 15, a resident with no status input gets the dividend, since the status defaults to citizen and take-up to true.
+  period: 2026
+  input:
+    state_code: AK
+  output:
+    ak_permanent_fund_dividend_eligible: true
+    takes_up_ak_permanent_fund_dividend_if_eligible: true
+    ak_permanent_fund_dividend: 1_000
+
+- name: Case 16, a lawful permanent resident gets the dividend under AS 43.23.005(a)(5)(B).
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: LEGAL_PERMANENT_RESIDENT
+  output:
+    ak_permanent_fund_dividend: 1_000
+
+- name: Case 17, a refugee gets the dividend under AS 43.23.005(a)(5)(C).
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: REFUGEE
+  output:
+    ak_permanent_fund_dividend: 1_000
+
+- name: Case 18, an asylee gets the dividend under AS 43.23.005(a)(5)(D).
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: ASYLEE
+  output:
+    ak_permanent_fund_dividend: 1_000
+
+- name: Case 19, an undocumented Alaska resident gets no dividend.
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: UNDOCUMENTED
+  output:
+    ak_permanent_fund_dividend_eligible: false
+    ak_permanent_fund_dividend: 0
+
+- name: Case 20, a resident who does not take up the dividend gets none, though eligible.
+  period: 2026
+  input:
+    state_code: AK
+    takes_up_ak_permanent_fund_dividend_if_eligible: false
+  output:
+    ak_permanent_fund_dividend_eligible: true
+    ak_permanent_fund_dividend: 0
+
+- name: Case 21, each person in one household gets the dividend on their own status and take-up.
+  period: 2026
+  input:
+    people:
+      citizen:
+        age: 40
+      permanent_resident:
+        age: 38
+        immigration_status: LEGAL_PERMANENT_RESIDENT
+      undocumented_parent:
+        age: 36
+        immigration_status: UNDOCUMENTED
+      non_applicant:
+        age: 15
+        takes_up_ak_permanent_fund_dividend_if_eligible: false
+      child:
+        age: 5
+    households:
+      household:
+        members: [citizen, permanent_resident, undocumented_parent, non_applicant, child]
+        state_code: AK
+  output:
+    ak_permanent_fund_dividend: [1_000, 1_000, 0, 0, 1_000]
+
+- name: Case 22, a filer who does not take up the dividend has no dividend in federal gross income or AGI.
+  period: 2026
+  input:
+    people:
+      person:
+        age: 40
+        employment_income: 50_000
+        takes_up_ak_permanent_fund_dividend_if_eligible: false
+    tax_units:
+      tax_unit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        state_code: AK
+  output:
+    ak_permanent_fund_dividend: 0
+    ak_energy_relief: 0
+    irs_gross_income: 50_000
+    adjusted_gross_income: 50_000
+
+- name: Case 23, a supplied dividend overrides the calculation for an ineligible person.
+  period: 2026
+  input:
+    state_code: AK
+    immigration_status: UNDOCUMENTED
+    ak_permanent_fund_dividend: 1_000
+  output:
+    ak_permanent_fund_dividend: 1_000
+
+- name: Case 24, an undocumented child gets no dividend though a citizen parent does, since under AS 43.23.005(c) a child still needs a status in (a)(5).
+  period: 2026
+  input:
+    people:
+      parent:
+        age: 35
+      child:
+        age: 6
+        immigration_status: UNDOCUMENTED
+    households:
+      household:
+        members: [parent, child]
+        state_code: AK
+  output:
+    ak_permanent_fund_dividend: [1_000, 0]
+
+- name: Case 25, a resident child under one gets the dividend unless an input says otherwise, since age 0 does not show a birth during the dividend year.
+  period: 2026
+  input:
+    people:
+      infant:
+        age: 0
+      infant_born_during_the_dividend_year:
+        age: 0
+        takes_up_ak_permanent_fund_dividend_if_eligible: false
+      one_year_old:
+        age: 1
+    households:
+      household:
+        members: [infant, infant_born_during_the_dividend_year, one_year_old]
+        state_code: AK
+  output:
+    ak_permanent_fund_dividend: [1_000, 0, 1_000]