minor

changelog_entry.yaml

@@ -1,4 +1,4 @@
-- bump: patch
+- bump: minor
   changes:
-    fixed:
+    added:
     - Limit the SALT deduction to property taxes reform.

policyengine_us/parameters/gov/irs/deductions/itemized/salt_and_real_estate/sources.yaml

@@ -0,0 +1,13 @@
+description: Alabama subtracts the following credits for the federal tax deduction.
+values:
+  2021-01-01:
+    - state_and_local_sales_or_income_tax
+    - real_estate_taxes
+
+metadata:
+  unit: list
+  period: year
+  label: SALT and real estate tax deduction
+  reference:
+    - title: 26 U.S. Code § 164 - Taxes
+      href: https://www.law.cornell.edu/uscode/text/26/164

policyengine_us/reforms/deductions/salt/limit_salt_deduction_to_property_taxes.py

@@ -3,30 +3,15 @@
 
 
 def create_limit_salt_deduction_to_property_taxes() -> Reform:
-    class salt_deduction(Variable):
-        value_type = float
-        entity = TaxUnit
-        label = "SALT deduction"
-        unit = USD
-        documentation = "State and local taxes plus real estate tax deduction from taxable income."
-        definition_period = YEAR
-        reference = "https://www.law.cornell.edu/uscode/text/26/164"
-
-        def formula(tax_unit, period, parameters):
-            salt_amount = add(
-                tax_unit,
-                period,
-                ["real_estate_taxes"],
-            )
-            salt = parameters(
-                period
-            ).gov.irs.deductions.itemized.salt_and_real_estate
-            cap = salt.cap[tax_unit("filing_status", period)]
-            return min_(cap, salt_amount)
+    def modify_parameters(parameters):
+        parameters.gov.states.ut.tax.income.rate.update(
+            period="2023", value=new_tax_rate
+        )
+        return parameters
 
     class reform(Reform):
         def apply(self):
-            self.update_variable(salt_deduction)
+            self.modify_parameters(modify_parameters)
 
     return reform
 

policyengine_us/variables/gov/irs/income/taxable_income/deductions/itemizing/salt_deduction.py

@@ -11,13 +11,11 @@ class salt_deduction(Variable):
     reference = "https://www.law.cornell.edu/uscode/text/26/164"
 
     def formula(tax_unit, period, parameters):
+        p = parameters(period).gov.irs.deductions.itemized.salt_and_real_estate
         salt_amount = add(
             tax_unit,
             period,
-            ["state_and_local_sales_or_income_tax", "real_estate_taxes"],
+            p.sources,
         )
-        salt = parameters(
-            period
-        ).gov.irs.deductions.itemized.salt_and_real_estate
-        cap = salt.cap[tax_unit("filing_status", period)]
+        cap = p.cap[tax_unit("filing_status", period)]
         return min_(cap, salt_amount)