From ec04a940e5e6f5497965d4465af05955083ae924 Mon Sep 17 00:00:00 2001 From: Claude Date: Mon, 2 Nov 2026 23:20:03 +0000 Subject: [PATCH 1/2] Restore DC's 85% EITC match for 2026-2028 after the temporary 100% expired D.C. Law 26-89 set the with-children match in 47-1806.04(f)(1)(B-2) to 100% from TY2025 and repealed (B-3); it expired on September 25, 2026. The permanent text gives 85% for taxable years after 2024 and 100% from 2029 under (B-3). The parameter held 100% for every year from 2025. Co-Authored-By: Claude Opus 5.5 Claude-Session: https://claude.ai/code/session_01LwQq6JoAx1PqHmDjxg51eh --- changelog.d/dc-eitc-match-2025.fixed.md | 1 + .../credits/eitc/with_children/match.yaml | 12 ++- .../income/dc_eitc_with_qualifying_child.yaml | 85 +++++++++++++++++++ 3 files changed, 97 insertions(+), 1 deletion(-) create mode 100644 changelog.d/dc-eitc-match-2025.fixed.md diff --git a/changelog.d/dc-eitc-match-2025.fixed.md b/changelog.d/dc-eitc-match-2025.fixed.md new file mode 100644 index 00000000000..fed9f9ee128 --- /dev/null +++ b/changelog.d/dc-eitc-match-2025.fixed.md @@ -0,0 +1 @@ +Set the DC EITC match for filers with qualifying children to 85% for 2026 through 2028 and 100% from 2029, after the temporary 100% match for 2025 expired. diff --git a/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml b/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml index c48798bcdfe..7d0f38698d4 100644 --- a/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml +++ b/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml @@ -6,6 +6,8 @@ metadata: reference: - title: Code of the District of Columbia § 47–1806.04 (f)(1) href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.04#(f)(1) + - title: D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (D.C. Law 26-89), § 2(i) + href: https://code.dccouncil.gov/us/dc/council/laws/26-89 - title: 2023 DC Form D-40 Booklet, Page 34, Line 27c href: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2023_D40_Book_Final_012324.pdf#page=34 - title: 2024 DC Form D-40 Booklet, Page 34, Line 27c @@ -17,4 +19,12 @@ metadata: values: 2015-01-01: 0.4 # (f)(1)(A) and (f)(1)(B) 2022-01-01: 0.7 # (f)(1)(B-1) - 2025-01-01: 1 # (f)(1)(B-2) - DC Code already updated to reflect 100% match + # D.C. Law 26-89 § 2(i) set (B-2) to 100% for taxable years after 2024 and + # repealed (B-3). That temporary law took effect on February 12, 2026, for + # the TY2025 filing season, and expired on September 25, 2026. + 2025-01-01: 1 + # With the temporary law expired, the permanent (B-2) gives 85% for taxable + # years beginning after December 31, 2024, and (B-3) gives 100% after + # December 31, 2028. + 2026-01-01: 0.85 # (f)(1)(B-2) + 2029-01-01: 1 # (f)(1)(B-3) diff --git a/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_eitc_with_qualifying_child.yaml b/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_eitc_with_qualifying_child.yaml index dd55b7dfbf1..c6658eaf056 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_eitc_with_qualifying_child.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_eitc_with_qualifying_child.yaml @@ -125,3 +125,88 @@ # wages, so federal earned income is $6,000 (Form 1040 EIC Worksheet B, # line 4b, combines both spouses' amounts on a joint return). dc_eitc_with_qualifying_child: 1_428 + +- name: DC EITC with a qualifying child is 85% of the federal credit in 2026 (permanent (B-2)) + period: 2026 + absolute_error_margin: 0.01 + input: + people: + head: + age: 30 + employment_income: 10_000 + is_tax_unit_head: true + child: + age: 5 + is_tax_unit_dependent: true + tax_units: + tax_unit: + members: [head, child] + filing_status: HEAD_OF_HOUSEHOLD + spm_units: + spm_unit: + members: [head, child] + households: + household: + members: [head, child] + state_code: DC + output: + # Federal EITC: 34% phase-in x $10,000 = $3,400, below the one-child + # maximum. DC: 85% x $3,400 = $2,890. + eitc: 3_400 + dc_eitc_with_qualifying_child: 2_890 + +- name: DC EITC with a qualifying child is still 85% in 2028 + period: 2028 + absolute_error_margin: 0.01 + input: + people: + head: + age: 30 + employment_income: 10_000 + is_tax_unit_head: true + child: + age: 5 + is_tax_unit_dependent: true + tax_units: + tax_unit: + members: [head, child] + filing_status: HEAD_OF_HOUSEHOLD + spm_units: + spm_unit: + members: [head, child] + households: + household: + members: [head, child] + state_code: DC + output: + # 85% x (34% x $10,000) = $2,890. + eitc: 3_400 + dc_eitc_with_qualifying_child: 2_890 + +- name: DC EITC with a qualifying child returns to 100% in 2029 ((B-3)) + period: 2029 + absolute_error_margin: 0.01 + input: + people: + head: + age: 30 + employment_income: 10_000 + is_tax_unit_head: true + child: + age: 5 + is_tax_unit_dependent: true + tax_units: + tax_unit: + members: [head, child] + filing_status: HEAD_OF_HOUSEHOLD + spm_units: + spm_unit: + members: [head, child] + households: + household: + members: [head, child] + state_code: DC + output: + # 100% x (34% x $10,000) = $3,400. + eitc: 3_400 + dc_eitc_with_qualifying_child: 3_400 From 7c638705d0b71951ec78dd1adc16de42466fb002 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Mon, 2 Nov 2026 19:34:12 -0500 Subject: [PATCH 2/2] Record the TY2025 DC EITC reading and cite the emergency act D.C. Act 26-214 set (B-2) to 100% from December 3, 2025, as of January 1, 2025, so it held at the close of 2025. The temporary law carried that through the filing season. Add the act to the references and record the TY2025 question in source_conflicts/candidates.yaml: the Attorney General's opinion, OTR's FAQ and the 2025 D-40 booklet all use 100%. Co-Authored-By: Claude Opus 5.5 --- .../credits/eitc/with_children/match.yaml | 8 ++-- source_conflicts/candidates.yaml | 45 +++++++++++++++++++ 2 files changed, 50 insertions(+), 3 deletions(-) diff --git a/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml b/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml index 7d0f38698d4..5e954455a79 100644 --- a/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml +++ b/policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml @@ -6,6 +6,8 @@ metadata: reference: - title: Code of the District of Columbia § 47–1806.04 (f)(1) href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.04#(f)(1) + - title: D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 (D.C. Act 26-214), § 2(i) + href: https://code.dccouncil.gov/us/dc/council/acts/26-214 - title: D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (D.C. Law 26-89), § 2(i) href: https://code.dccouncil.gov/us/dc/council/laws/26-89 - title: 2023 DC Form D-40 Booklet, Page 34, Line 27c @@ -19,9 +21,9 @@ metadata: values: 2015-01-01: 0.4 # (f)(1)(A) and (f)(1)(B) 2022-01-01: 0.7 # (f)(1)(B-1) - # D.C. Law 26-89 § 2(i) set (B-2) to 100% for taxable years after 2024 and - # repealed (B-3). That temporary law took effect on February 12, 2026, for - # the TY2025 filing season, and expired on September 25, 2026. + # D.C. Act 26-214 § 2(i) (emergency, Dec. 3, 2025 to Mar. 3, 2026) and + # D.C. Law 26-89 § 2(i) (temporary, Feb. 12 to Sep. 25, 2026) set (B-2) to + # 100% for taxable years after 2024 and repealed (B-3). 2025-01-01: 1 # With the temporary law expired, the permanent (B-2) gives 85% for taxable # years beginning after December 31, 2024, and (B-3) gives 100% after diff --git a/source_conflicts/candidates.yaml b/source_conflicts/candidates.yaml index 025bb5dd42b..98b82376c3b 100644 --- a/source_conflicts/candidates.yaml +++ b/source_conflicts/candidates.yaml @@ -1693,6 +1693,51 @@ candidates: no DC source settles years before 2023 and that setting it to false applies the DC-law reading. The October 2026 ruling chose the childless schedule; verify ARPA's effect before identifying a statutory departure and establish any pre-2021 conflict separately. +- id: us-dc:eitc-with-children-2025-rate + program: income-tax + years: + from: 2025 + to: 2025 + type: tax + question: Does the TY2025 DC EITC for filers with qualifying children match 100% of the federal credit under the + emergency and temporary acts in force through the filing season, or 85% under the permanent (B-2) as codified + after the temporary law expired? + sources: + - kind: statute + citation: D.C. Code §47-1806.04(f)(1)(B-2), permanent text, 85% for taxable years beginning after December 31, + 2024 + url: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.04#(f)(1) + - kind: statute + citation: D.C. Act 26-214 §2(i) (emergency, December 3, 2025 to March 3, 2026) + url: https://code.dccouncil.gov/us/dc/council/acts/26-214 + - kind: statute + citation: D.C. Law 26-89 §2(i) (temporary, February 12 to September 25, 2026) + url: https://code.dccouncil.gov/us/dc/council/laws/26-89 + - kind: guidance + citation: D.C. Attorney General opinion on decoupling, retroactivity and validity, February 24, 2026 + url: https://oag.dc.gov/sites/default/files/2026-02/AG-Opinion-Decoupling-Retroactivity-and-Validity-.pdf + - kind: guidance + citation: OTR EITC FAQs, percent of federal EIC by tax year + url: https://otr.cfo.dc.gov/page/eitc-faqs + - kind: instructions + citation: 2025 D-40 booklet, line 27d, PDF p.43 + url: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2025_D40_Book_082026_v1.pdf#page=43 + readings: + statute: The emergency act applied as of January 1, 2025, and held at the close of 2025, and the temporary law + held through the filing season, so TY2025 is 100%. + other: The permanent text, once the temporary law expired, gives 85% for every year after 2024. + example: Head of household, $10,000 wages, one child, TY2025, federal EITC $3,400. `dc_eitc` is $3,400 at 100% + and $2,890 at 85%. + pe_us: + follows: statute + code: + - policyengine_us/parameters/gov/states/dc/tax/income/credits/eitc/with_children/match.yaml + prs: + - https://github.com/PolicyEngine/policyengine-us/pull/10638 + state: ruled + note: PE-US applies 100% for 2025, 85% for 2026 to 2028 and 100% from 2029. The Attorney General concluded that + H.J.Res. 142 did not repeal the temporary act, and OTR's FAQ and the 2025 D-40 booklet both use 100% for 2025. + A later FY2027 Budget Support Act could change 2026 onward. - id: us-dc:liheap-income-floor-vs-smi-limit program: liheap years: