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@DTrim99 DTrim99 commented Jan 25, 2026

Summary

  • Implement the new DC Child Tax Credit per DC Code § 47-1806.17
  • Remove repealed 2025 parameters (old credit never took effect)
  • Add 2026+ parameters with proper uprating

Key Changes

Parameter New Value (2026+)
Credit Amount $1,000 per child (uprated with CPI, rounded to $5)
Age Threshold Under 18
Child Cap No cap
Income Threshold (Single/HOH/Widow) $55,000 (uprated with CPI, rounded to $100)
Income Threshold (Joint) $70,000
Income Threshold (Separate) $35,000
Phase-out Amount $50 per $1,000 increment

Test plan

  • All 13 DC CTC unit tests pass
  • Verify uprating works correctly for future years

Fixes #7244

🤖 Generated with Claude Code

DTrim99 and others added 2 commits January 25, 2026 13:44
Update DC CTC parameters per DC Code § 47-1806.17 effective for tax
years beginning after December 31, 2025:

- Credit amount: $420 -> $1,000 (uprated with CPI, rounded to $5)
- Age threshold: under 6 -> under 18
- Child cap: 3 -> no cap (infinite)
- Income thresholds lowered:
  - Single/HOH/Widow: $160,000 -> $55,000
  - Joint: $240,000 -> $70,000
  - Separate: $120,000 -> $35,000
- Phase-out rate: $20 -> $50 per $1,000 increment

Fixes PolicyEngine#7244

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
The old DC CTC was repealed before taking effect. Remove all 2025
parameter values and update the refundable credits list to add dc_ctc
starting 2026 instead of 2025.

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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codecov bot commented Jan 25, 2026

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (e9bb8c8) to head (cb88b42).
⚠️ Report is 85 commits behind head on main.

Additional details and impacted files
@@            Coverage Diff             @@
##              main     #7247    +/-   ##
==========================================
  Coverage   100.00%   100.00%            
==========================================
  Files           14         1    -13     
  Lines          212        20   -192     
==========================================
- Hits           212        20   -192     
Flag Coverage Δ
unittests 100.00% <100.00%> (ø)

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- Remove child_cap parameter (not in statute)
- Remove dc_ctc_capped_children variable (integrate into dc_ctc)
- Count eligible children directly in dc_ctc formula
- Update tests to use full household structures
- Remove failing integration test (pre-2026 DC CTC)

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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DTrim99 commented Jan 26, 2026

Updates

  • Removed child_cap parameter and dc_ctc_capped_children variable since the new statute has no child cap
  • Integrated eligible children count directly into dc_ctc.py
  • Updated tests to use full household structures instead of mocked dc_ctc_capped_children input
  • Removed failing integration test that tested pre-2026 DC scenario (credit didn't exist then)

All 11 DC CTC tests pass.

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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Fix DC Child Tax Credit for 2026+ based on new statute

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