Add Utah HB 210 taxpayer credit add-on structural reform

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+      - Add Utah HB 210 (2026) structural reform implementing the taxpayer credit add-on for married filers ($543 MFS, $1,086 joint/surviving spouse) with phaseout.

policyengine_us/entities.py

@@ -1,6 +1,5 @@
 from policyengine_core.entities import build_entity
 
-
 Household = build_entity(
     key="household",
     plural="households",

policyengine_us/parameters/gov/contrib/states/ut/hb210/in_effect.yaml

@@ -0,0 +1,12 @@
+description: Utah HB 210 (2026) is in effect, modifying tax credits including a taxpayer credit add-on for married filers.
+
+values:
+  0000-01-01: false
+
+metadata:
+  unit: bool
+  period: year
+  label: Utah HB 210 in effect
+  reference:
+    - title: Utah HB 210 (2026)
+      href: https://le.utah.gov/~2026/bills/static/HB0210.html

policyengine_us/parameters/gov/contrib/states/ut/hb210/taxpayer_credit_add_on/amount.yaml

@@ -0,0 +1,19 @@
+description: Utah provides this additional taxpayer credit amount for married filers under HB 210 (2026).
+SINGLE:
+  2026-01-01: 0
+JOINT:
+  2026-01-01: 1_086
+HEAD_OF_HOUSEHOLD:
+  2026-01-01: 0
+SEPARATE:
+  2026-01-01: 543
+SURVIVING_SPOUSE:
+  2026-01-01: 0
+
+metadata:
+  unit: currency-USD
+  period: year
+  label: Utah HB 210 taxpayer credit add-on amount
+  reference:
+    - title: Utah HB 210 (2026), Section 2, amending 59-10-1018(3)
+      href: https://le.utah.gov/~2026/bills/static/HB0210.html

policyengine_us/reforms/reforms.py

@@ -106,6 +106,7 @@
 )
 from .states.ut import (
     create_ut_refundable_eitc_reform,
+    create_ut_hb210_reform,
 )
 from .additional_tax_bracket import (
     create_additional_tax_bracket_reform,
@@ -272,6 +273,8 @@ def create_structural_reforms_from_parameters(parameters, period):
 
     ut_refundable_eitc = create_ut_refundable_eitc_reform(parameters, period)
 
+    ut_hb210 = create_ut_hb210_reform(parameters, period)
+
     american_worker_rebate_act = create_american_worker_rebate_act_reform(
         parameters, period
     )
@@ -352,6 +355,7 @@ def create_structural_reforms_from_parameters(parameters, period):
         mi_surtax,
         nyc_mamdani_income_tax,
         ut_refundable_eitc,
+        ut_hb210,
         additional_tax_bracket,
         american_worker_rebate_act,
         ctc_per_child_phase_out,

policyengine_us/reforms/states/ut/__init__.py

@@ -1,3 +1,6 @@
 from .ut_refundable_eitc import (
     create_ut_refundable_eitc_reform,
 )
+from .ut_hb210 import (
+    create_ut_hb210_reform,
+)

policyengine_us/reforms/states/ut/ut_hb210.py

@@ -0,0 +1,76 @@
+from policyengine_us.model_api import *
+from policyengine_core.periods import period as period_
+
+
+def create_ut_hb210() -> Reform:
+    """
+    Utah HB 210 (2026) - Tax penalty removal bill that:
+    1. Adds a taxpayer credit add-on for married filers ($543 MFS, $1,086 joint)
+    2. Removes marriage penalties from phaseout thresholds (parameter changes)
+    3. Repeals the Utah EITC (parameter change - set rate to 0)
+
+    This reform implements provision #1 (the structural change).
+    Provisions #2 and #3 can be modeled via parameter changes.
+    """
+
+    class ut_taxpayer_credit(Variable):
+        value_type = float
+        entity = TaxUnit
+        label = "Utah taxpayer credit"
+        unit = USD
+        documentation = "Form TC-40, line 20"
+        definition_period = YEAR
+        defined_for = StateCode.UT
+        reference = (
+            "https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1018.html",
+            "https://le.utah.gov/~2026/bills/static/HB0210.html",
+        )
+
+        def formula(tax_unit, period, parameters):
+            # Base maximum credit (6% of deductions + exemption)
+            base_max = tax_unit("ut_taxpayer_credit_max", period)
+
+            # Add the married filer add-on per HB 210 Section 59-10-1018(3)
+            # The add-on is added before phaseout is applied
+            filing_status = tax_unit("filing_status", period)
+            p = parameters(
+                period
+            ).gov.contrib.states.ut.hb210.taxpayer_credit_add_on
+            add_on = p.amount[filing_status]
+
+            # Total maximum credit including add-on
+            total_max = base_max + add_on
+
+            # Apply phaseout reduction to total credit (including add-on)
+            reduction = tax_unit("ut_taxpayer_credit_reduction", period)
+            return max_(total_max - reduction, 0)
+
+    class reform(Reform):
+        def apply(self):
+            self.update_variable(ut_taxpayer_credit)
+
+    return reform
+
+
+def create_ut_hb210_reform(parameters, period, bypass: bool = False):
+    if bypass:
+        return create_ut_hb210()
+
+    p = parameters.gov.contrib.states.ut.hb210
+
+    reform_active = False
+    current_period = period_(period)
+
+    for i in range(5):
+        if p(current_period).in_effect:
+            reform_active = True
+            break
+        current_period = current_period.offset(1, "year")
+
+    if reform_active:
+        return create_ut_hb210()
+    else:
+        return None
+
+
+ut_hb210 = create_ut_hb210_reform(None, None, bypass=True)

policyengine_us/system.py

@@ -30,7 +30,6 @@
 
 from typing import Annotated
 
-
 COUNTRY_DIR = Path(__file__).parent
 
 CURRENT_YEAR = 2024

policyengine_us/tests/policy/contrib/states/ut/ut_hb210_reform_test.yaml

@@ -0,0 +1,222 @@
+# Utah HB 210 (2026) - Taxpayer credit add-on for married filers
+# Per Section 59-10-1018(3):
+# - $543 for married filing separately
+# - $1,086 for joint filing status (including surviving spouse)
+# - $0 for single, head of household
+
+- name: HB 210 - Joint filers receive base credit plus $1,086 add-on
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 40
+        employment_income: 20_000
+      person2:
+        age: 38
+        employment_income: 10_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # Base credit ~1932 (6% of standard deduction ~32,200)
+    # Plus $1,086 add-on for joint filers
+    # Total ~3,018
+    ut_taxpayer_credit: 3_018
+
+- name: HB 210 - Married filing separately receives base credit plus $543 add-on
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 40
+        employment_income: 30_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SEPARATE
+    households:
+      household:
+        members: [person1]
+        state_code: UT
+  output:
+    # Base credit ~818 (partial after phaseout)
+    # Plus $543 add-on for married filing separately
+    # Total ~1,361
+    ut_taxpayer_credit: 1_361
+
+- name: HB 210 - Single filers receive base credit with no add-on
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 30
+        employment_income: 30_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+    households:
+      household:
+        members: [person1]
+        state_code: UT
+  output:
+    # Base credit ~818 (partial after phaseout)
+    # Single filers get no add-on ($0)
+    # Total ~818
+    ut_taxpayer_credit: 818
+
+- name: HB 210 - Head of household receives base credit with no add-on
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 35
+        employment_income: 40_000
+      person2:
+        age: 10
+        is_tax_unit_dependent: true
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: HEAD_OF_HOUSEHOLD
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # Base credit ~1,422 (partial after phaseout + dependent exemption)
+    # Head of household filers get no add-on ($0)
+    # Total ~1,422
+    ut_taxpayer_credit: 1_422
+
+- name: HB 210 - Surviving spouse receives no add-on (not a married claimant)
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 50
+        employment_income: 50_000
+      person2:
+        age: 10
+        is_tax_unit_dependent: true
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: SURVIVING_SPOUSE
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # Base credit ~1,896 (partial after phaseout + dependent exemption)
+    # Surviving spouse is NOT a married claimant per bill intent
+    # No add-on ($0)
+    # Total ~1,896
+    ut_taxpayer_credit: 1_896
+
+- name: HB 210 - Joint vs Single comparison shows add-on benefit
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 30
+        employment_income: 10_000
+      person2:
+        age: 28
+        employment_income: 5_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # Base credit = 6% * standard deduction (~32,200) = ~1,932
+    # Income $15,000 is below $36,426 threshold, so no phaseout
+    # Plus $1,086 add-on for joint filers
+    # Total ~3,018
+    ut_taxpayer_credit: 3_018
+
+- name: HB 210 - Phaseout reduces add-on at high income (joint)
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 40
+        employment_income: 150_000
+      person2:
+        age: 38
+        employment_income: 100_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # High income ($250k) is well above $36,426 threshold
+    # Income excess = $250,000 - $36,426 = $213,574
+    # Phaseout = $213,574 * 0.013 = $2,776.46
+    # Base max = ~$1,932 + add-on $1,086 = ~$3,018
+    # Final = max($3,018 - $2,776, 0) = ~$242
+    # Both base and add-on are reduced by phaseout
+    ut_taxpayer_credit: 252
+
+- name: HB 210 - Phaseout fully eliminates credit at very high income
+  absolute_error_margin: 1
+  period: 2026
+  reforms: policyengine_us.reforms.states.ut.ut_hb210.ut_hb210
+  input:
+    gov.contrib.states.ut.hb210.in_effect: true
+    people:
+      person1:
+        age: 45
+        employment_income: 300_000
+      person2:
+        age: 43
+        employment_income: 200_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2]
+        state_code: UT
+  output:
+    # Very high income ($500k) fully phases out credit
+    # Income excess = $500,000 - $36,426 = $463,574
+    # Phaseout = $463,574 * 0.013 = $6,026
+    # Total max = ~$3,018
+    # Final = max($3,018 - $6,026, 0) = $0
+    ut_taxpayer_credit: 0

policyengine_us/tools/variables.py

@@ -13,9 +13,7 @@ def add_n(word):
 
 def print_variable_summary(variable_name: str):
     variable = variables.get(variable_name)
-    return Markdown(
-        f"""
+    return Markdown(f"""
         ## {variable.name}
         This variable models a{add_n(variable.entity.label)}**{variable.entity.label}**'s **{variable.label}**.
-        """
-    )
+        """)