Fix Montana disability exclusion repeal, elderly credit receipt timing and occupancy tests

changelog.d/statute-bugs-mt-disability-ehrc-elderly.fixed.md

@@ -0,0 +1 @@
+End Montana's disability income exclusion with its 2024 repeal, count only the federal and Montana refundable credits a household actually received (by default the 2020 and 2021 Economic Impact Payments, with other receipts as separate inputs) in the elderly homeowner/renter credit's gross household income, and require that credit's claimant to meet the six-month owner, renter or lessee occupancy and nine-month residence tests (MCA 15-30-2338(1)(b)-(c)).

policyengine_us/parameters/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/gross_income_sources.yaml

@@ -12,15 +12,15 @@ metadata:
     href: https://law.justia.com/codes/montana/2022/title-15/chapter-30/part-23/section-15-30-2337/
   - title: HB191 (2021), section 1(9), all nontaxable income
     href: https://archive.legmt.gov/bills/2021/HB0199/HB0191_X.pdf#page=2
-  - title: ARM 42.4.301(2) as in effect 8/20/2004 to 11/9/2017 ("elderly homeowner/renter credit refunds received")
+  - title: ARM 42.4.301(2) as in effect 8/20/2004 to 11/9/2017 ("Montana state income tax and elderly homeowner/renter credit refunds received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/788508cc-8418-41c8-926d-3dfb11af3fd6
   - title: ARM 42.4.301(2) as in effect 11/10/2017 to 9/6/2024 ("federal refundable credits received" and "any state refundable credits received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/297c7a8d-f6f4-4b70-a7b7-fe1cedee53e7
   - title: ARM 42.4.301(2) as in effect from 9/7/2024 ("federal refundable tax credits received" and "any state refundable tax credits received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/768c8344-24ee-4950-9d5e-9d8fc97ec0f7
   - title: "2014 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation; Income Source Worksheet, line 7, alimony, cash public assistance, unemployment #page 53-54"
     href: https://taxsim.nber.org/historical_state_tax_forms/MT/2014/Form_2_booklet_2014.pdf#page=53
-  - title: "2016 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation, and cash public assistance and relief; Gross Household Income Worksheet, line 7, alimony, cash public assistance, unemployment #page 74-75"
+  - title: "2016 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation, cash public assistance and relief, and federally taxable state tax refunds; Gross Household Income Worksheet, line 7, alimony, cash public assistance, unemployment #page 74-75"
     href: https://taxsim.nber.org/historical_state_tax_forms/MT/2016/Form_2_booklet_2016.pdf#page=74
   - title: "2017 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation, and cash public assistance and relief; Gross Household Income Worksheet, items 4 and 5 (alimony, cash public assistance, unemployment) #page 64-65"
     href: https://taxsim.nber.org/historical_state_tax_forms/MT/2017/Form%202%202017%20Booklet.pdf#page=64
@@ -83,13 +83,21 @@ values:
     # unemployment"; Schedule 2EC line 14 from 2024, the total received).
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
     # Refundable credits received (2023 schedule line 7, Schedule 2EC line 8
-    # from 2024): Montana's refundable credits other than this credit,
-    # and this credit as received during the year (ARM 42.4.301(2)(c)).
-    - mt_refundable_credits_before_renter_credit
+    # from 2024): this credit and the other Montana refundable credits, as
+    # received during the year. Before 11/10/2017, ARM 42.4.301(2)(c)
+    # counted "Montana state income tax and elderly homeowner/renter credit
+    # refunds received", and a Montana refundable credit is paid as part of
+    # the Montana income tax refund. The 2016 instructions give "Federally
+    # taxable state tax refunds" and "Elderly homeowner/renter credit
+    # allowed" as examples of "all the income received, taxable and
+    # nontaxable". Federal refundable credits received count from 2017.
+    - mt_elderly_homeowner_or_renter_credit_state_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_received
-  # ARM 42.4.301(2)(b), amended effective 11/10/2017, counts "federal
-  # refundable credits received"; the 2017 Form 2EC worksheet counts "any
-  # federal or state refundable credits".
+  # ARM 42.4.301(2)(b)-(c), amended effective 11/10/2017, counts "federal
+  # refundable credits received" and "any state refundable credits
+  # received"; the 2017 Form 2EC worksheet counts "any federal or state
+  # refundable credits". Both are receipts during the year, not the credits
+  # on this year's return (MCA 15-30-2337(4)).
   2017-01-01:
     - adjusted_gross_income_person
     - tax_exempt_interest_income
@@ -106,7 +114,7 @@ values:
     - gi_cash_assistance
     - tax_exempt_disability_benefits
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
-    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_state_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
   # Actual rebate receipts count under the statutory nontaxable-income
@@ -129,7 +137,7 @@ values:
     - gi_cash_assistance
     - tax_exempt_disability_benefits
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
-    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_state_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_property_tax_rebate_received

policyengine_us/parameters/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/minimum_occupancy_months.yaml

@@ -0,0 +1,14 @@
+description: Montana requires a claimant of the elderly homeowner or renter credit to occupy one or more Montana dwellings as an owner, renter, or lessee for at least this many months of the claim period.
+values:
+  2009-01-01: 6
+metadata:
+  unit: month
+  period: year
+  label: Montana elderly homeowner or renter credit minimum qualifying occupancy months
+  reference:
+    - title: MCA 15-30-2338(1)(c)
+      href: https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0230/section_0380/0150-0300-0230-0380.html
+    - title: MCA 15-30-2338(1)(c) (2009)
+      href: https://mca.legmt.gov/bills/2009/mca/15/30/15-30-2338.htm
+    - title: 2025 Montana Form 2 instructions, Elderly Homeowner/Renter Credit, "You occupied a Montana residence as a renter, owner, or lessee for at least six months during the tax year"
+      href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=44

policyengine_us/parameters/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/minimum_residency_months.yaml

@@ -0,0 +1,14 @@
+description: Montana requires a claimant of the elderly homeowner or renter credit to reside in Montana for at least this many months of the claim period.
+values:
+  2009-01-01: 9
+metadata:
+  unit: month
+  period: year
+  label: Montana elderly homeowner or renter credit minimum residency months
+  reference:
+    - title: MCA 15-30-2338(1)(b)
+      href: https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0230/section_0380/0150-0300-0230-0380.html
+    - title: MCA 15-30-2338(1)(b) (2009)
+      href: https://mca.legmt.gov/bills/2009/mca/15/30/15-30-2338.htm
+    - title: 2025 Montana Form 2 instructions, Elderly Homeowner/Renter Credit, "You lived in Montana for at least nine months during the tax year"
+      href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=44

policyengine_us/parameters/gov/states/mt/tax/income/subtractions/disability_income/in_effect.yaml

@@ -0,0 +1,15 @@
+description: Montana provides the disability income exclusion if this is true.
+values:
+  2010-01-01: true
+  # 2021 Mont. Laws ch. 503 repeals 15-30-2110, MCA, which held the
+  # exclusion, for income tax years beginning after December 31, 2023.
+  2024-01-01: false
+metadata:
+  unit: bool
+  period: year
+  label: Montana disability income exclusion in effect
+  reference:
+    - title: "2021 Mont. Laws ch. 503 (SB 399), section 65 repeals 15-30-2110, MCA; section 70(1) applies the act to income tax years beginning after December 31, 2023 #page 68,70"
+      href: https://archive.legmt.gov/content/Publications/sales/2021SessionLaws_V3_ERRATA-VERSION.pdf#page=68
+    - title: 2024 Montana Form 2 instructions, repealed deductions, "Partial retirement disability deduction for taxpayers under age 65"
+      href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=5

policyengine_us/parameters/gov/states/mt/tax/income/subtractions/subtractions.yaml

@@ -21,7 +21,9 @@ values:
     - mt_interest_exemption_person
     - mt_tuition_subtraction_person
     - mt_old_age_subtraction
-    - mt_disability_income_exclusion_person
+    # 2021 Mont. Laws ch. 503 (SB 399) section 65 repealed 15-30-2110, MCA,
+    # and with it the disability income exclusion, for tax years beginning
+    # after December 31, 2023 (section 70(1)).
     - salt_refund_income # MCA 15-30-2120 / Form 2 Subtractions Schedule
     - mt_other_subtractions
   2025-01-01:
@@ -32,7 +34,6 @@ values:
     - mt_interest_exemption_person
     - mt_tuition_subtraction_person
     - mt_old_age_subtraction
-    - mt_disability_income_exclusion_person
     # TODO: Remove this subtraction starting in 2029 because the federal
     # Schedule 1-A deductions expire after 2028.
     - mt_federal_obbba_subtraction
@@ -53,3 +54,7 @@ metadata:
       href: https://leg.mt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0100/0150-0300-0210-0100.html
     - title: 2025 Montana Form 2 Instructions
       href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=21
+    - title: "2021 Montana Session Laws, chapter 503 (SB 399), section 65 (repealer) and section 70 (effective dates) #page 68,70"
+      href: https://archive.legmt.gov/content/Publications/sales/2021SessionLaws_V3_ERRATA-VERSION.pdf#page=68
+    - title: 2024 Montana Form 2 instructions, repealed deductions
+      href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=5