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Puerto Rico Earned Income Credit #5479

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Puerto Rico Earned Income Credit #5479

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10 changes: 10 additions & 0 deletions ...e_us/parameters/gov/territories/pr/tax/income/credits/earned_income/net_income_limit.yaml
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Original file line number Diff line number Diff line change
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description:
values:
2010-12-31: 2_200
metadata:
unit: currency-USD
label:
period: year
reference:
- title:
href:
16 changes: 16 additions & 0 deletions ...ine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/percent_income.yaml
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@PavelMakarchuk PavelMakarchuk Jan 14, 2025 •
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Lets make three new files (both marginal rate parameters):
phase_in_rate.yaml - 3.5 to 6%
max_credit.yaml : $600 (maybe changes by year)

phase_out_rate.yaml marginal_rate parameter

brackets:
  - threshold:
      0000-01-01: 0
    rate:
      2022-01-01: 0
  - threshold:
      2022-01-01: 10_000
    rate:
      2022-01-01: 0.02
  - threshold:
      2022-01-01: 35_000
    rate:
      2022-01-01: 0

For the computation of the credit:

  1. Calculate credit amount pre phase out
    Income * phase_in_rate capped at max_credit
  2. Calculate the phase_out
    p.phase_out_rate.calc(income)
  3. Calculate final value
    credit - phase_out

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description:
values:
2010-12-31: 3.5
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2011-12-31: 4
2012-12-31: 4.5
2013-12-31: 5
2014-12-31: 5.5
2015-12-31: 6

metadata:
unit: percent
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label:
period: year
reference:
- title:
href:
11 changes: 11 additions & 0 deletions ...ers/gov/territories/pr/tax/income/credits/earned_income/percent_income_upper_bracket.yaml
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Original file line number Diff line number Diff line change
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description:
values:
2010-12-31: 2

metadata:
unit: percent
label:
period: year
reference:
- title:
href:
16 changes: 16 additions & 0 deletions ...ameters/gov/territories/pr/tax/income/credits/earned_income/upper_bracket_income_max.yaml
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probably dont need this as it is mathematically derived

Original file line number Diff line number Diff line change
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description:
values:
2010-12-31: 22_500
2011-12-31: 25_000
2012-12-31: 27_500
2013-12-31: 30_000
2014-12-31: 32_500
2015-12-31: 35_000

metadata:
unit: currency-USD
label:
period: year
reference:
- title:
href:
11 changes: 11 additions & 0 deletions ...ameters/gov/territories/pr/tax/income/credits/earned_income/upper_bracket_income_min.yaml
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Original file line number Diff line number Diff line change
@@ -0,0 +1,11 @@
description:
values:
2010-12-31: 10_000

metadata:
unit: currency-USD
label:
period: year
reference:
- title:
href:
19 changes: 19 additions & 0 deletions ...s/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_eligible.py
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from policyengine_us.model_api import *


class pr_earned_income_credit_eligible(Variable):
value_type = bool
unit = USD
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entity = Person
label = ""
definition_period = YEAR
reference = ""

def formula(person, period, parameters):
p = parameters(
period
).gov.territories.pr.tax.income.credits.earned_income
head_or_spouse = person("is_tax_unit_head_or_spouse", period)
net_income = person("") # if net_income (interest, child care payments etc.)

return head_or_spouse & net_income < p.net_income_limit
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