Add Indiana SB 243 OBBBA tax conformity (tips, overtime, car loan interest)#7771
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DTrim99 wants to merge 3 commits intoPolicyEngine:mainfrom
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Add Indiana SB 243 OBBBA tax conformity (tips, overtime, car loan interest)#7771DTrim99 wants to merge 3 commits intoPolicyEngine:mainfrom
DTrim99 wants to merge 3 commits intoPolicyEngine:mainfrom
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Implements Indiana's conformity to federal OBBBA (One Big Beautiful Bill Act) tax provisions for tax year 2026 only: - IC 6-3-2-31: Tip income deduction (conforms to IRC Section 224) - IC 6-3-2-32: Overtime income deduction (conforms to IRC Section 225) - IC 6-3-2-33: Auto loan interest deduction (conforms to IRC Section 163(h)(4)) Closes PolicyEngine#7770 Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
Codecov Report✅ All modified and coverable lines are covered by tests. Additional details and impacted files@@ Coverage Diff @@
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Files 2 3 +1
Lines 13 42 +29
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+ Hits 13 42 +29
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Use bracket notation gov.states["in"] instead of gov.states.in_ since "in" is a Python keyword. Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
- Fix parameter descriptions to use standard format ("provides this deduction")
- Add code comments documenting unimplemented proration rules (IC 6-3-2-31(c),
IC 6-3-2-32(c)) — zero real-world impact under current IN law
- Add code comment documenting unmodeled residency/spouse/trust rules
(IC 6-3-2-33(c)-(d)) — covered by defined_for or not applicable
- Add integration test verifying tip deduction flows through in_deductions
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
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Summary
Implements Indiana Senate Bill 243's conformity to federal OBBBA (One Big Beautiful Bill Act of 2025) tax provisions for tax year 2026.
Closes #7770
Provisions Implemented
Regulatory Authority
Implementation Details
Indiana's income tax starts from federal AGI. These federal OBBBA deductions are "below-the-line" at the federal level (taken after AGI), but Indiana is conforming by creating state-level deductions equal to the federal amounts.
Each Indiana deduction:
Fiscal Impact
Per the Legislative Services Agency fiscal note:
Files Added
Parameters
parameters/gov/states/in/tax/income/deductions/obbba_conformity/tip_income_deduction_available.yamlparameters/gov/states/in/tax/income/deductions/obbba_conformity/overtime_income_deduction_available.yamlparameters/gov/states/in/tax/income/deductions/obbba_conformity/auto_loan_interest_deduction_available.yamlVariables
variables/gov/states/in/tax/income/deductions/obbba_conformity/in_tip_income_deduction.pyvariables/gov/states/in/tax/income/deductions/obbba_conformity/in_overtime_income_deduction.pyvariables/gov/states/in/tax/income/deductions/obbba_conformity/in_auto_loan_interest_deduction.pyTests
Modified
parameters/gov/states/in/tax/income/deductions/deductions.yaml- Added OBBBA deductions for 2026🤖 Generated with Claude Code