Add Indiana over-65 property tax credit

changelog.d/8308.added.md

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+Added the Indiana Over 65 Property Tax Credit.

policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml

@@ -156,6 +156,29 @@ values:
     - wi_homestead_credit
     - wi_property_tax_credit
     - wv_homestead_excess_property_tax_credit
+  2026-01-01:
+    - az_property_tax_credit
+    - ct_property_tax_credit
+    - dc_ptc
+    - dc_senior_disabled_property_tax_relief
+    - il_property_tax_credit
+    - in_over_65_property_tax_credit
+    - ma_senior_circuit_breaker
+    - me_property_tax_fairness_credit
+    - mi_homestead_property_tax_credit
+    - mn_renters_credit
+    - mo_property_tax_credit
+    - mt_elderly_homeowner_or_renter_credit
+    - mt_property_tax_rebate
+    - nj_property_tax_credit
+    - nm_property_tax_rebate
+    - ny_real_property_tax_credit
+    - ok_ptc
+    - ri_property_tax_credit
+    - ut_homeowner_renter_relief
+    - wi_homestead_credit
+    - wi_property_tax_credit
+    - wv_homestead_excess_property_tax_credit
 
 metadata:
   unit: list

policyengine_us/parameters/gov/states/in/tax/property/over_65_credit/age_threshold.yaml

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+description: Indiana limits eligibility to filers at or above this age under the Over 65 Credit program.
+values:
+  2026-01-01: 65
+metadata:
+  unit: year
+  period: year
+  label: Indiana Over 65 Credit age threshold
+  reference:
+    - title: Monroe County Auditor | Over 65
+      href: https://www.in.gov/counties/monroe/Departments/auditor/over-65/
+    - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions and Exemptions
+      href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2

policyengine_us/parameters/gov/states/in/tax/property/over_65_credit/amount.yaml

@@ -0,0 +1,12 @@
+description: Indiana provides this amount under the Over 65 Credit program.
+values:
+  2026-01-01: 150
+metadata:
+  unit: currency-USD
+  period: year
+  label: Indiana Over 65 Credit amount
+  reference:
+    - title: Monroe County Auditor | Over 65
+      href: https://www.in.gov/counties/monroe/Departments/auditor/over-65/
+    - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions and Exemptions
+      href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2

policyengine_us/parameters/gov/states/in/tax/property/over_65_credit/income_limit.yaml

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+description: Indiana limits adjusted gross income to this amount under the Over 65 Credit program.
+metadata:
+  unit: currency-USD
+  period: year
+  label: Indiana Over 65 Credit income limit
+  breakdown:
+    - filing_status
+  reference:
+    - title: Monroe County Auditor | Over 65
+      href: https://www.in.gov/counties/monroe/Departments/auditor/over-65/
+    - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions and Exemptions
+      href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2
+SINGLE:
+  2026-01-01: 60_000
+HEAD_OF_HOUSEHOLD:
+  2026-01-01: 60_000
+JOINT:
+  2026-01-01: 70_000
+SURVIVING_SPOUSE:
+  2026-01-01: 70_000
+SEPARATE:
+  2026-01-01: 60_000

policyengine_us/parameters/gov/states/in/tax/property/over_65_credit/surviving_spouse_age_threshold.yaml

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+description: Indiana limits surviving spouse eligibility to filers at or above this age under the Over 65 Credit program.
+values:
+  2026-01-01: 60
+metadata:
+  unit: year
+  period: year
+  label: Indiana Over 65 Credit surviving spouse age threshold
+  reference:
+    - title: Monroe County Auditor | Over 65
+      href: https://www.in.gov/counties/monroe/Departments/auditor/over-65/
+    - title: Indiana Department of Local Government Finance | Legislation Affecting Deductions and Exemptions
+      href: https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2

policyengine_us/tests/policy/baseline/gov/states/in/tax/property/over_65_credit/in_over_65_property_tax_credit.yaml

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+- name: Case 1, credit is capped at the statutory amount.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit: 150
+
+- name: Case 2, credit is limited to property taxes paid.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 100
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit: 100

policyengine_us/tests/policy/baseline/gov/states/in/tax/property/over_65_credit/in_over_65_property_tax_credit_eligible.yaml

@@ -0,0 +1,183 @@
+- name: Case 1, senior homeowner under the single income limit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 60_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: true
+
+- name: Case 2, filer below the age threshold.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 64
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: false
+
+- name: Case 3, joint filers above the income limit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 66
+        real_estate_taxes: 2_000
+      person2:
+        age: 64
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status:
+          2024: JOINT
+          2026: JOINT
+        adjusted_gross_income:
+          2024: 70_001
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: false
+
+- name: Case 4, senior without real estate taxes.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: false
+
+- name: Case 5, surviving spouse at the surviving spouse age threshold.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 60
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status:
+          2024: SURVIVING_SPOUSE
+          2026: SURVIVING_SPOUSE
+        adjusted_gross_income:
+          2024: 60_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: true
+
+- name: Case 6, widowed filer marker qualifies outside federal surviving spouse status.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 60
+        is_surviving_spouse: true
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: true
+
+- name: Case 7, prior-prior-year income determines eligibility.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 40_000
+          2026: 80_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: true
+
+- name: Case 8, income above the prior-prior-year limit is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income:
+          2024: 60_001
+          2026: 40_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: false
+
+- name: Case 9, current surviving spouse status qualifies with prior-prior-year single income.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 60
+        real_estate_taxes: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status:
+          2024: SINGLE
+          2026: SURVIVING_SPOUSE
+        adjusted_gross_income:
+          2024: 60_000
+    households:
+      household:
+        members: [person1]
+        state_code: IN
+  output:
+    in_over_65_property_tax_credit_eligible: true

policyengine_us/variables/gov/states/in/tax/property/over_65_credit/in_over_65_property_tax_credit.py

@@ -0,0 +1,20 @@
+from policyengine_us.model_api import *
+
+
+class in_over_65_property_tax_credit(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Indiana Over 65 Property Tax Credit"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://www.in.gov/counties/monroe/Departments/auditor/over-65/",
+        "https://www.in.gov/dlgf/files/2025-memos/250612-Cockerill-Memo-Legislation-Affecting-Deductions%2C-Exemptions%2C-and-Credits.pdf#page=2",
+    )
+    defined_for = "in_over_65_property_tax_credit_eligible"
+
+    def formula(tax_unit, period, parameters):
+        return min_(
+            parameters(period).gov.states["in"].tax.property.over_65_credit.amount,
+            add(tax_unit, period, ["real_estate_taxes"]),
+        )

policyengine_us/variables/gov/states/in/tax/property/over_65_credit/in_over_65_property_tax_credit_eligible.py

@@ -0,0 +1,46 @@
+from policyengine_us.model_api import *
+
+
+class in_over_65_property_tax_credit_eligible(Variable):
+    value_type = bool
+    entity = TaxUnit
+    label = "Eligible for the Indiana Over 65 Property Tax Credit"
+    definition_period = YEAR
+    reference = (
+        "https://www.in.gov/counties/monroe/Departments/auditor/over-65/",
+        "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):
+        prior_prior_year = period.offset(-2, "year")
+        p = parameters(period).gov.states["in"].tax.property.over_65_credit
+        income_year_filing_status = tax_unit("filing_status", prior_prior_year)
+        current_filing_status = tax_unit("filing_status", period)
+        status = current_filing_status.possible_values
+        person = tax_unit.members
+        head_or_spouse = person("is_tax_unit_head_or_spouse", period)
+        age = person("age", period.this_year)
+        is_surviving_spouse = person("is_surviving_spouse", period)
+
+        senior = tax_unit.any(
+            (age >= p.age_threshold) & head_or_spouse,
+        )
+        marked_surviving_spouse = tax_unit.any(
+            (age >= p.surviving_spouse_age_threshold)
+            & is_surviving_spouse
+            & head_or_spouse,
+        )
+        federal_surviving_spouse = (
+            current_filing_status == status.SURVIVING_SPOUSE
+        ) & tax_unit.any(
+            (age >= p.surviving_spouse_age_threshold) & head_or_spouse,
+        )
+        surviving_spouse = marked_surviving_spouse | federal_surviving_spouse
+        income_eligible = (
+            tax_unit("adjusted_gross_income", prior_prior_year)
+            <= p.income_limit[income_year_filing_status]
+        )
+        homeowner = add(tax_unit, period, ["real_estate_taxes"]) > 0
+
+        return (senior | surviving_spouse) & income_eligible & homeowner