Add 2025 Act 51 thresholds to VT CSRS/military retirement exemption

changelog.d/vt-csrs-2025-thresholds.fixed.md

@@ -0,0 +1 @@
+- Raised the Vermont CSRS/military retirement exemption thresholds by $5,000 for 2025 per Act No. 51 (2025), Sec. 3 (32 V.S.A. § 5830e(b)), matching the Social Security thresholds updated in #8853.

policyengine_us/parameters/gov/states/vt/tax/income/agi/retirement_income_exemption/csrs/reduction/end.yaml

@@ -17,20 +17,27 @@ metadata:
     - title: 2025 Vermont Income Tax Return Booklet - Retirement Income Exemption
       href: https://tax.vermont.gov/sites/tax/files/documents/Income-Booklet-2025.pdf#page=16
      # Legal code specifies inflation unadjusted thresholds
+    - title: Act No. 51 (2025), Sec. 3 (32 V.S.A. § 5830e(b), thresholds +$5,000, retroactive to 2025-01-01)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/BILLS/S-0051/S-0051%20As%20Passed%20by%20Both%20House%20and%20Senate%20Official.pdf
     - title: Legal Code Titl. 32 V.S.A. § 5830e(a)(1)(C), (a)(2)(C) 
       href: https://legislature.vermont.gov/statutes/section/32/151/05830e
 JOINT:
   2021-01-01: 70_000
   2022-01-01: 75_000
+  2025-01-01: 80_000
 HEAD_OF_HOUSEHOLD:
   2021-01-01: 55_000
   2022-01-01: 60_000
+  2025-01-01: 65_000
 SURVIVING_SPOUSE:
   2021-01-01: 55_000
   2022-01-01: 60_000
+  2025-01-01: 65_000
 SINGLE:
   2021-01-01: 55_000
   2022-01-01: 60_000
+  2025-01-01: 65_000
 SEPARATE:
   2021-01-01: 55_000
   2022-01-01: 60_000
+  2025-01-01: 65_000

policyengine_us/parameters/gov/states/vt/tax/income/agi/retirement_income_exemption/csrs/reduction/start.yaml

@@ -17,20 +17,27 @@ metadata:
     - title: 2025 Vermont Income Tax Return Booklet - Retirement Income Exemption
       href: https://tax.vermont.gov/sites/tax/files/documents/Income-Booklet-2025.pdf#page=16
      # Legal code specify reduction threshold at $50,000 for non filing jointly filer and at $65,000 for filing jointly filer. Date unknown.
+    - title: Act No. 51 (2025), Sec. 3 (32 V.S.A. § 5830e(b), thresholds +$5,000, retroactive to 2025-01-01)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/BILLS/S-0051/S-0051%20As%20Passed%20by%20Both%20House%20and%20Senate%20Official.pdf
     - title: Legal Code Titl. 32 V.S.A. § 5830e(a)(1)(B), (a)(2)(B)
       href: https://legislature.vermont.gov/statutes/section/32/151/05830e
 JOINT:
   2021-01-01: 60_000
   2022-01-01: 65_000
+  2025-01-01: 70_000
 HEAD_OF_HOUSEHOLD:
   2021-01-01: 45_000
   2022-01-01: 50_000
+  2025-01-01: 55_000
 SURVIVING_SPOUSE:
   2021-01-01: 45_000
   2022-01-01: 50_000
+  2025-01-01: 55_000
 SINGLE:
   2021-01-01: 45_000
   2022-01-01: 50_000
+  2025-01-01: 55_000
 SEPARATE:
   2021-01-01: 45_000
   2022-01-01: 50_000
+  2025-01-01: 55_000

policyengine_us/tests/policy/baseline/gov/states/vt/tax/income/agi/subtractions/vt_retirement_income_exemption.yaml

@@ -231,3 +231,44 @@
         state_name: VT
   output:
     vt_retirement_income_exemption_eligible: true
+- name: VT 2025 single CSRS elector in the S.51 band gets a phased exemption (Act 51 Sec. 3, pe-us 9020)
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    people:
+      person:
+        age: 66
+        csrs_retirement_pay: 12_000
+        employment_income: 62_000  # csrs_retirement_pay is not itself wired into AGI
+    tax_units:
+      tax_unit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        state_code: VT
+  output:
+    # AGI 62,000 -> ratio (65,000 - 62,000) / 10,000 = 0.30
+    # exemption = min(10,000, 12,000) x 0.30 = 3,000 (0 before Act 51 thresholds)
+    vt_retirement_income_exemption: 3_000
+- name: VT 2025 joint CSRS elector fully excluded at 70k AGI under the raised full-exclusion threshold
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    people:
+      head:
+        age: 67
+        csrs_retirement_pay: 10_000
+        employment_income: 70_000  # csrs_retirement_pay is not itself wired into AGI
+      spouse:
+        age: 66
+    tax_units:
+      tax_unit:
+        members: [head, spouse]
+    households:
+      household:
+        members: [head, spouse]
+        state_code: VT
+  output:
+    # AGI 70,000 = new full-exclusion threshold (was 65,000 pre-Act 51): full 10,000
+    vt_retirement_income_exemption: 10_000