Update New York and NYC 2025 Individual Income Tax Models

[DTrim99]

Summary

Updates the New York State individual income tax model for tax year 2025 (returns filed in 2026).

Closes #7142

Changes

Parameter Reference Updates (109 files)

Added 2025 Form IT-201-I Instructions references to all NY and NYC income tax parameters:

NYS Core Tax Structure:

• Tax rate brackets (all 5 filing statuses) - Page 33
• Standard deductions - Page 11
• Dependent exemption - Page 11
• Supplemental tax thresholds and calculations - Pages 35-39

NYS Credits:

• EITC match rate (30%) - Page 27
• Empire State Child Tax Credit - Pages 25-26
• Child and Dependent Care Credit - Page 26
• Household Credit - Page 12
• Real Property Tax Credit - Page 27
• College Tuition Credit/Deduction - Page 27
• Solar Energy Systems Equipment Credit
• Geothermal Energy System Credit
• Inflation Refund Credit (2025 only)
• Pension Exclusion - Page 10
• Itemized Deduction Reduction - Pages 14-15

NYC Tax Structure:

• Tax rate brackets (all 5 filing statuses) - Pages 40-41
• NYC EITC - Page 29
• NYC School Tax Credit - Pages 20, 26
• NYC Household Credit - Page 20
• NYC CDCC - Page 26

Parameter Value Updates

Geothermal Energy System Credit Cap:

• Added 2025-07-01: 10_000 - Cap increased from $5,000 to $10,000 for systems placed in service on/after July 1, 2025
• Source: https://www.tax.ny.gov/pit/credits/geothermal-energy-system-credit.htm

New Integration Tests

Added ny_2025_integration.yaml with 10 test cases:

1. Single filer standard case ($50k)
2. Joint filer with dependents ($80k)
3. High income supplemental tax ($200k)
4. Head of household ($60k)
5. Empire State CTC 2025 (children ages 2 and 8)
6. Empire State CTC with phase-out
7. Geothermal credit under cap
8. Geothermal credit at cap
9. Joint filer CTC phase-out
10. Low income no tax

2025 Values Confirmed (Unchanged from 2024)

Parameter	Value
Standard Deduction (Single)	$8,000
Standard Deduction (Joint)	$16,050
Standard Deduction (HOH)	$11,200
Dependent Exemption	$1,000
EITC Match	30% of federal
Supplemental Tax Threshold	$107,650
Empire State CTC (under 4)	$1,000
Empire State CTC (ages 4-16)	$330
NYC School Tax (Single)	$63
NYC School Tax (Joint)	$125

References

• 2025 Form IT-201-I Instructions (HTML)
• 2025 Form IT-201-I Instructions (PDF)
• Empire State Child Credit
• NYS EITC
• Geothermal Energy System Credit
• NYC Credits

Test Results

All 208 NY income tax tests pass:

============================= 208 passed in 174.85s ==============================

Not Included

Central Business District Toll Credit - This new 2025 credit reimburses congestion pricing tolls for low-income NYC CBD residents. Not implemented because:

1. No geographic data to identify CBD zone residents
2. Congestion pricing just started in 2025 - no historical toll payment data
3. Cannot meaningfully model in microsimulation without these inputs

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[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 74.51%. Comparing base (3ddb69c) to head (0f5d579).
⚠️ Report is 2 commits behind head on main.

Additional details and impacted files

@@             Coverage Diff             @@
##             main    #7143       +/-   ##
===========================================
- Coverage   97.00%   74.51%   -22.49%     
===========================================
  Files           7     3654     +3647     
  Lines         100    52600    +52500     
  Branches        1      263      +262     
===========================================
+ Hits           97    39194    +39097     
- Misses          2    13373    +13371     
- Partials        1       33       +32     

Flag	Coverage Δ
unittests	74.51% <ø> (-22.49%)	⬇️

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[DTrim99]

PR Review: NY 2025 Tax Update

🟢 Approved - Ready to Merge

This PR correctly implements the 2025 NY State and NYC income tax updates. All parameter values have been verified against official NY Tax Department sources.

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✅ What's Correct

Regulatory Accuracy - VERIFIED

Parameter	2025 Value	Status
Standard Deduction (Single)	$8,000	✅ Correct
Standard Deduction (Joint)	$16,050	✅ Correct
Standard Deduction (HOH)	$11,200	✅ Correct
Dependent Exemption	$1,000	✅ Correct
NYS EITC Match	30%	✅ Correct
Supplemental Tax Threshold	$107,650	✅ Correct
Empire State CTC (under 4)	$1,000	✅ Correct
Empire State CTC (ages 4-16)	$330	✅ Correct
CTC Phase-out Rate	$16.50/$1,000	✅ Correct
NYC School Credit (Single/Joint)	$63/$125	✅ Correct
Geothermal Cap (7/1/25+)	$10,000	✅ Correct

Reference Quality - PASSED

• All 109 parameter files include 2025 Form IT-201-I references with page anchors
• Page numbers are consistent by content type (brackets=p33, std deduction=p11, etc.)
• Geothermal credit source corroborates the $10,000 cap effective July 1, 2025

Code Quality - PASSED

• All values use underscore separators (e.g., 10_000)
• Proper YAML structure and metadata throughout
• Changelog correctly formatted with minor bump

CI Status - PASSING

• All required checks pass (Lint, Full Suite, Structural tests)
• Only codecov/project shows "fail" (coverage threshold, not blocking)

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🟡 Should Address (Minor)

1. Test file naming: ny_2025_integration.yaml should be integration.yaml per project conventions (CLAUDE.md: "Use integration.yaml for integration tests")

2. Duplicate references: Two files have duplicate reference entries pointing to same URL:

   • household_credit/single.yaml - Two refs to it201i.pdf#page=12
   • geothermal_energy_system/cap.yaml - Two refs to geothermal credit webpage

3. Misleading test comment: Case 7 comment says "after July 1, 2025 with $10,000 cap" but annual period 2025 correctly uses start-of-year $5,000 cap

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🟢 Suggestions (Optional)

Test Coverage Gaps - Consider adding in follow-up PR:

• SEPARATE and SURVIVING_SPOUSE filing status tests
• CTC age boundary tests (child exactly age 4, age 17)
• CTC phase-out boundary tests (income exactly at threshold)
• Zero income edge case
• Very high income supplemental tax path

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Validation Summary

Check	Result
Regulatory Accuracy	✅ All values verified
Reference Quality	✅ 109 files with page anchors
Code Patterns	✅ Proper formatting
Test Coverage	✅ 10 cases covering key scenarios
CI Status	✅ All required checks passing

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Verdict: APPROVE

The implementation is correct and well-documented. Minor suggestions above are not blocking.

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🤖 Generated with Claude Code

[DTrim99]

Fixes Applied

🟡 Should-Address Issues Fixed

1. Test file naming ✅

   • Renamed ny_2025_integration.yaml → integration.yaml per CLAUDE.md conventions

2. Duplicate references removed ✅

   • household_credit/single.yaml: Removed generic "Instructions for Form IT-201" duplicate
   • geothermal_energy_system/cap.yaml: Removed "2025 Geothermal energy system credit" duplicate

3. Misleading test comment fixed ✅

   • Case 7 now accurately explains that annual period 2025 uses start-of-year $5,000 cap

Verification

• ✅ All 10 NY integration tests pass
• ✅ Code formatted with make format

Ready for merge.

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