Merge pull request #6815 from PolicyEngine/PavelMakarchuk/issue6814

Adjust the New Jersey CDCC to apply the actual federal CDCC instead of the potential

Author: PavelMakarchuk

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+    - Adjust the New Jersey CDCC to apply the actual federal CDCC instead of the potential.

policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/cdcc/nj_cdcc.yaml

@@ -3,7 +3,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 20_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 500
 
@@ -12,7 +12,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 40_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 400
 
@@ -21,7 +21,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 40_000
-    cdcc_potential: 2_000
+    cdcc: 2_000
   output:
     nj_cdcc: 800
 
@@ -30,7 +30,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 70_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 300
 
@@ -39,7 +39,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 80_000
-    cdcc_potential: 1_500
+    cdcc: 1_500
   output:
     nj_cdcc: 450
 
@@ -48,7 +48,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 100_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 200
 
@@ -57,7 +57,7 @@
   input:
     state_code: NJ
     nj_taxable_income: 130_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 100
 
@@ -66,6 +66,6 @@
   input:
     state_code: NJ
     nj_taxable_income: 160_000
-    cdcc_potential: 1_000
+    cdcc: 1_000
   output:
     nj_cdcc: 0

policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/integation.yaml

@@ -0,0 +1,57 @@
+- name: 0-NJ.yaml
+  absolute_error_margin: 2
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 40
+        employment_income: 10000.0
+        ssi: 0
+        wic: 0
+        head_start: 0
+        early_head_start: 0
+        commodity_supplemental_food_program: 0
+        deductible_mortgage_interest: 13333.333
+        qualified_dividend_income: 23910.8455
+        is_tax_unit_head: true
+      person2:
+        age: 40
+        employment_income: 10000.0
+        ssi: 0
+        wic: 0
+        head_start: 0
+        early_head_start: 0
+        commodity_supplemental_food_program: 0
+        qualified_dividend_income: 23910.8455
+        is_tax_unit_spouse: true
+      person3:
+        age: 5
+        employment_income: 0
+        ssi: 0
+        wic: 0
+        head_start: 0
+        early_head_start: 0
+        commodity_supplemental_food_program: 0
+        is_tax_unit_dependent: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: false
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+        premium_tax_credit: 0
+        local_income_tax: 0
+        state_sales_tax: 0
+        tax_unit_childcare_expenses: 6_000
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        snap: 0
+        tanf: 0
+        free_school_meals: 0
+        reduced_price_school_meals: 0
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_fips: 34
+  output:
+    nj_income_tax: 955

policyengine_us/variables/gov/states/nj/tax/income/credits/cdcc/nj_cdcc.py

@@ -19,8 +19,8 @@ def formula(tax_unit, period, parameters):
         taxable_income = tax_unit("nj_taxable_income", period)
 
         # Get federal CDCC
-        # New Jersey matches the potential federal credit
-        federal_cdcc = tax_unit("cdcc_potential", period)
+        # New Jersey matches the actual federal credit value
+        federal_cdcc = tax_unit("cdcc", period)
 
         # Calculate NJ CDCC
         rate = p.calc(taxable_income, right=True)