From f3a9a94ef04543ef271e70017d0e63582791a222 Mon Sep 17 00:00:00 2001 From: David Trimmer Date: Fri, 10 Jul 2026 16:33:39 -0400 Subject: [PATCH 1/3] Add Indiana supplemental homestead credit (SEA 1, 2025) Senate Enrolled Act 1 (2025), SEC. 74, adds IC 6-1.1-20.6-7.7, a supplemental homestead credit equal to the lesser of 10% of the homestead property tax liability or $300, for property taxes first due and payable in 2026 and after. There is no age or income limit; it applies to owner- occupied homesteads. Co-Authored-By: Claude Opus 4.8 --- .../in-supplemental-homestead-credit.added.md | 1 + .../household/state_property_tax_credits.yaml | 1 + .../supplemental_homestead_credit/cap.yaml | 12 +++ .../supplemental_homestead_credit/rate.yaml | 12 +++ .../in_supplemental_homestead_credit.yaml | 84 +++++++++++++++++++ .../in_supplemental_homestead_credit.py | 28 +++++++ 6 files changed, 138 insertions(+) create mode 100644 changelog.d/in-supplemental-homestead-credit.added.md create mode 100644 policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml create mode 100644 policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml create mode 100644 policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml create mode 100644 policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py diff --git a/changelog.d/in-supplemental-homestead-credit.added.md b/changelog.d/in-supplemental-homestead-credit.added.md new file mode 100644 index 00000000000..5adc66b252d --- /dev/null +++ b/changelog.d/in-supplemental-homestead-credit.added.md @@ -0,0 +1 @@ +Add the Indiana supplemental homestead credit (Senate Enrolled Act 1, 2025), the lesser of 10% of homestead property tax or $300, from 2026. diff --git a/policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml b/policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml index 9593c470a06..f315bb2257f 100644 --- a/policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml +++ b/policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml @@ -172,6 +172,7 @@ values: - dc_senior_disabled_property_tax_relief - il_property_tax_credit - in_over_65_property_tax_credit + - in_supplemental_homestead_credit - ma_senior_circuit_breaker - me_property_tax_fairness_credit - mi_homestead_property_tax_credit diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml new file mode 100644 index 00000000000..2c222f35823 --- /dev/null +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml @@ -0,0 +1,12 @@ +description: Indiana caps its supplemental homestead credit at this amount. +values: + 2026-01-01: 300 +metadata: + unit: currency-USD + period: year + label: Indiana supplemental homestead credit cap + reference: + - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - lesser of 10% of liability or $300 + href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf + - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits + href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml new file mode 100644 index 00000000000..69e4e0deca5 --- /dev/null +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml @@ -0,0 +1,12 @@ +description: Indiana provides its supplemental homestead credit as this share of the homestead property tax liability, up to a cap. +values: + 2026-01-01: 0.1 +metadata: + unit: /1 + period: year + label: Indiana supplemental homestead credit rate + reference: + - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - lesser of 10% of liability or $300 + href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf + - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits + href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml new file mode 100644 index 00000000000..6e6eabc8f1c --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml @@ -0,0 +1,84 @@ +# Indiana supplemental homestead credit (Senate Enrolled Act 1, 2025; +# IC 6-1.1-20.6-7.7): the lesser of 10% of the homestead property tax liability +# or $300, for taxes first due and payable in 2026 and after. No age or income +# limit. + +- name: 2026 homeowner below the cap receives 10% of property tax + period: 2026 + input: + people: + person1: + real_estate_taxes: 2_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: IN + output: + in_supplemental_homestead_credit: 200 + +- name: 2026 homeowner at the $3,000 liability boundary receives the $300 cap + period: 2026 + input: + people: + person1: + real_estate_taxes: 3_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: IN + output: + in_supplemental_homestead_credit: 300 + +- name: 2026 homeowner above the cap is limited to $300 + period: 2026 + input: + people: + person1: + real_estate_taxes: 5_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: IN + output: + in_supplemental_homestead_credit: 300 + +- name: 2026 renter with no real estate taxes receives no credit + period: 2026 + input: + people: + person1: + real_estate_taxes: 0 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: IN + output: + in_supplemental_homestead_credit: 0 + +- name: 2026 non-Indiana homeowner receives no credit + period: 2026 + input: + people: + person1: + real_estate_taxes: 2_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: MN + output: + in_supplemental_homestead_credit: 0 diff --git a/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py new file mode 100644 index 00000000000..d0327b56e30 --- /dev/null +++ b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py @@ -0,0 +1,28 @@ +from policyengine_us.model_api import * + + +class in_supplemental_homestead_credit(Variable): + value_type = float + entity = TaxUnit + label = "Indiana supplemental homestead credit" + unit = USD + definition_period = YEAR + reference = ( + "https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf", + "https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2", + ) + defined_for = StateCode.IN + + def formula(tax_unit, period, parameters): + # Senate Enrolled Act 1 (2025) adds IC 6-1.1-20.6-7.7, a supplemental + # homestead credit equal to the lesser of 10% of the homestead property + # tax liability or $300, for taxes first due and payable in 2026 and + # after. No age or income limit; homeowners only, so renters (with no + # real estate taxes) receive zero. + p = ( + parameters(period) + .gov.states["in"] + .tax.property.supplemental_homestead_credit + ) + property_tax = add(tax_unit, period, ["real_estate_taxes"]) + return min_(p.rate * property_tax, p.cap) From a052b395da35d02c0b35600f3283f9cd4f900b03 Mon Sep 17 00:00:00 2001 From: David Trimmer Date: Mon, 13 Jul 2026 15:46:18 -0400 Subject: [PATCH 2/3] Address review on IN supplemental homestead credit - Note in the formula that real_estate_taxes is a proxy for the homestead-only liability (bounded by the $300 cap). - Trim the rate parameter description and the reference-title glosses to the section citation only. - Adopt Case N test naming with error margins. Co-Authored-By: Claude Opus 4.8 --- .../supplemental_homestead_credit/cap.yaml | 2 +- .../supplemental_homestead_credit/rate.yaml | 4 ++-- .../in_supplemental_homestead_credit.yaml | 15 ++++++++++----- .../in_supplemental_homestead_credit.py | 5 ++++- 4 files changed, 17 insertions(+), 9 deletions(-) diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml index 2c222f35823..b0bc7187da8 100644 --- a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml @@ -6,7 +6,7 @@ metadata: period: year label: Indiana supplemental homestead credit cap reference: - - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - lesser of 10% of liability or $300 + - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml index 69e4e0deca5..78b94168cd9 100644 --- a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml @@ -1,4 +1,4 @@ -description: Indiana provides its supplemental homestead credit as this share of the homestead property tax liability, up to a cap. +description: Indiana provides its supplemental homestead credit as this share of the homestead property tax liability. values: 2026-01-01: 0.1 metadata: @@ -6,7 +6,7 @@ metadata: period: year label: Indiana supplemental homestead credit rate reference: - - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - lesser of 10% of liability or $300 + - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml index 6e6eabc8f1c..2ec5b0aaab1 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml @@ -3,8 +3,9 @@ # or $300, for taxes first due and payable in 2026 and after. No age or income # limit. -- name: 2026 homeowner below the cap receives 10% of property tax +- name: Case 1, 2026 homeowner below the cap receives 10% of property tax. period: 2026 + absolute_error_margin: 0.01 input: people: person1: @@ -19,8 +20,9 @@ output: in_supplemental_homestead_credit: 200 -- name: 2026 homeowner at the $3,000 liability boundary receives the $300 cap +- name: Case 2, 2026 homeowner at the $3,000 liability boundary receives the $300 cap. period: 2026 + absolute_error_margin: 0.01 input: people: person1: @@ -35,8 +37,9 @@ output: in_supplemental_homestead_credit: 300 -- name: 2026 homeowner above the cap is limited to $300 +- name: Case 3, 2026 homeowner above the cap is limited to $300. period: 2026 + absolute_error_margin: 0.01 input: people: person1: @@ -51,8 +54,9 @@ output: in_supplemental_homestead_credit: 300 -- name: 2026 renter with no real estate taxes receives no credit +- name: Case 4, 2026 renter with no real estate taxes receives no credit. period: 2026 + absolute_error_margin: 0.01 input: people: person1: @@ -67,8 +71,9 @@ output: in_supplemental_homestead_credit: 0 -- name: 2026 non-Indiana homeowner receives no credit +- name: Case 5, 2026 non-Indiana homeowner receives no credit. period: 2026 + absolute_error_margin: 0.01 input: people: person1: diff --git a/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py index d0327b56e30..cdfb62fc972 100644 --- a/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py +++ b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py @@ -18,7 +18,10 @@ def formula(tax_unit, period, parameters): # homestead credit equal to the lesser of 10% of the homestead property # tax liability or $300, for taxes first due and payable in 2026 and # after. No age or income limit; homeowners only, so renters (with no - # real estate taxes) receive zero. + # real estate taxes) receive zero. real_estate_taxes is used as a proxy + # for the homestead-only property tax liability, since PE has no + # homestead-specific real-estate-tax variable; the effect is bounded by + # the $300 cap. p = ( parameters(period) .gov.states["in"] From 1bff82e1b2b26ea87f9e7469dcd5cf6297904093 Mon Sep 17 00:00:00 2001 From: David Trimmer Date: Wed, 15 Jul 2026 11:56:50 -0400 Subject: [PATCH 3/3] Address Pavel's review on IN supplemental homestead credit + rebase - Fix the DLGF memo page anchor (#page=2 -> #page=9, the supplemental homestead credit section) in cap.yaml, rate.yaml, and the variable; add #page=124 (SEC. 74) to the enrolled-act citations. - Add an aggregate regression test: 2026 senior homeowner stacking the supplemental credit ($200) with the over-65 credit ($150) in taxsim_state_property_tax_credit (350), and a 2025 case asserting the umbrella excludes it (only the year-keyed list gates earlier years). - Add a multi-person tax-unit case ($1,500 + $1,500 -> $300 cap). - Document the statutory approximations (homestead qualification proxy, total vs homestead-only base, unmodeled referendum-tax exclusion) and use "limits" in the cap description. Rebased onto upstream/main (post-#9006). Co-Authored-By: Claude Opus 4.8 --- .../supplemental_homestead_credit/cap.yaml | 8 +-- .../supplemental_homestead_credit/rate.yaml | 6 +-- ...emental_homestead_credit_in_aggregate.yaml | 52 +++++++++++++++++++ .../in_supplemental_homestead_credit.yaml | 20 +++++++ .../in_supplemental_homestead_credit.py | 15 +++--- 5 files changed, 88 insertions(+), 13 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/gov/states/household/state_property_tax_credits/in_supplemental_homestead_credit_in_aggregate.yaml diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml index b0bc7187da8..20b4c579a15 100644 --- a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/cap.yaml @@ -1,4 +1,4 @@ -description: Indiana caps its supplemental homestead credit at this amount. +description: Indiana limits its supplemental homestead credit to this amount. values: 2026-01-01: 300 metadata: @@ -6,7 +6,7 @@ metadata: period: year label: Indiana supplemental homestead credit cap reference: - - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf + - title: Senate Enrolled Act 1 (2025), SEC. 74 (page 124), adding IC 6-1.1-20.6-7.7(c) + href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf#page=124 - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits - href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 + href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=9 diff --git a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml index 78b94168cd9..d5845dd272f 100644 --- a/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml +++ b/policyengine_us/parameters/gov/states/in/tax/property/supplemental_homestead_credit/rate.yaml @@ -6,7 +6,7 @@ metadata: period: year label: Indiana supplemental homestead credit rate reference: - - title: Senate Enrolled Act 1 (2025), SEC. 74, adding IC 6-1.1-20.6-7.7(c) - href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf + - title: Senate Enrolled Act 1 (2025), SEC. 74 (page 124), adding IC 6-1.1-20.6-7.7(c) + href: https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf#page=124 - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions, Exemptions, and Credits - href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2 + href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=9 diff --git a/policyengine_us/tests/policy/baseline/gov/states/household/state_property_tax_credits/in_supplemental_homestead_credit_in_aggregate.yaml b/policyengine_us/tests/policy/baseline/gov/states/household/state_property_tax_credits/in_supplemental_homestead_credit_in_aggregate.yaml new file mode 100644 index 00000000000..4d4f535544d --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/household/state_property_tax_credits/in_supplemental_homestead_credit_in_aggregate.yaml @@ -0,0 +1,52 @@ +# Guards that in_supplemental_homestead_credit flows through the +# state_property_tax_credits umbrella (taxsim_state_property_tax_credit) from +# 2026, stacking with the over-65 credit, and is excluded in 2025 by the +# year-keyed list (the standalone variable has no in_effect gate, so only the +# list protects earlier years). + +- name: 2026 umbrella stacks the supplemental homestead credit with the over-65 credit + period: 2026 + absolute_error_margin: 0.01 + input: + people: + person1: + age: 66 + real_estate_taxes: 2_000 + tax_units: + tax_unit: + members: [person1] + filing_status: + 2024: SINGLE + 2026: SINGLE + adjusted_gross_income: + 2024: 30_000 + 2026: 30_000 + households: + household: + members: [person1] + state_code: IN + output: + # Supplemental: 10% of 2,000 = 200. Over-65: $150 (senior, 2024 AGI 30,000 + # under the limit, homeowner). Umbrella = 350. + in_supplemental_homestead_credit: 200 + in_over_65_property_tax_credit: 150 + taxsim_state_property_tax_credit: 350 + +- name: 2025 umbrella excludes the supplemental homestead credit + period: 2025 + absolute_error_margin: 0.01 + input: + people: + person1: + real_estate_taxes: 2_000 + tax_units: + tax_unit: + members: [person1] + households: + household: + members: [person1] + state_code: IN + output: + # The credit is only in the 2026 list block, so the umbrella is 0 in 2025 + # even though the standalone variable would extrapolate a nonzero value. + taxsim_state_property_tax_credit: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml index 2ec5b0aaab1..fb778e8a0d7 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.yaml @@ -87,3 +87,23 @@ state_code: MN output: in_supplemental_homestead_credit: 0 + +- name: Case 6, 2026 multi-person tax unit is capped once per return. + period: 2026 + absolute_error_margin: 0.01 + input: + people: + person1: + real_estate_taxes: 1_500 + person2: + real_estate_taxes: 1_500 + tax_units: + tax_unit: + members: [person1, person2] + households: + household: + members: [person1, person2] + state_code: IN + output: + # 10% of the combined $3,000 is $300, exactly the cap, for the tax unit. + in_supplemental_homestead_credit: 300 diff --git a/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py index cdfb62fc972..50eef9305f2 100644 --- a/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py +++ b/policyengine_us/variables/gov/states/in/tax/property/supplemental_homestead_credit/in_supplemental_homestead_credit.py @@ -8,8 +8,8 @@ class in_supplemental_homestead_credit(Variable): unit = USD definition_period = YEAR reference = ( - "https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf", - "https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2", + "https://iga.in.gov/pdf-documents/124/2025/senate/bills/SB0001/SB0001.05.ENRH.pdf#page=124", + "https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=9", ) defined_for = StateCode.IN @@ -18,10 +18,13 @@ def formula(tax_unit, period, parameters): # homestead credit equal to the lesser of 10% of the homestead property # tax liability or $300, for taxes first due and payable in 2026 and # after. No age or income limit; homeowners only, so renters (with no - # real estate taxes) receive zero. real_estate_taxes is used as a proxy - # for the homestead-only property tax liability, since PE has no - # homestead-specific real-estate-tax variable; the effect is bounded by - # the $300 cap. + # real estate taxes) receive zero. + # Modeling approximations, all bounded by the $300 cap: eligibility is + # proxied by real_estate_taxes > 0 rather than the IC 6-1.1-12-37 + # homestead standard deduction qualification; the base is total + # real_estate_taxes rather than the homestead-only liability (PE has no + # homestead-specific variable); and subsection (d)'s exclusion of + # referendum-approved taxes from the base is not modeled. p = ( parameters(period) .gov.states["in"]