Update New York 2025 Individual Income Tax Model

## Summary

Update the New York State individual income tax model for tax year 2025 (returns filed in 2026). This includes adding 2025 references to all NY parameters, verifying values, and implementing new credits.

## Primary Reference

- **2025 Form IT-201 Instructions (PDF)**: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
- **2025 Form IT-201 Instructions (HTML)**: https://www.tax.ny.gov/forms/html-instructions/2025/it/it201i-2025.htm

## Parameters Requiring 2025 References

All NY parameters need a 2025 reference added (with page number) regardless of whether the value changed.

### NYS Income Tax Rates (Page ~33-34 of IT-201i)
- [ ] `gov/states/ny/tax/income/main/single.yaml`
- [ ] `gov/states/ny/tax/income/main/joint.yaml`
- [ ] `gov/states/ny/tax/income/main/separate.yaml`
- [ ] `gov/states/ny/tax/income/main/head_of_household.yaml`
- [ ] `gov/states/ny/tax/income/main/surviving_spouse.yaml`

**Values confirmed unchanged for 2025**: Same brackets and rates as 2022-2024

### NYS Supplemental Tax (Page ~35-37 of IT-201i)
- [ ] `gov/states/ny/tax/income/supplemental/min_agi.yaml` (value: $107,650)
- [ ] `gov/states/ny/tax/income/supplemental/phase_in_length.yaml`
- [ ] `gov/states/ny/tax/income/supplemental/incremental_benefit/*.yaml` (all filing statuses)
- [ ] `gov/states/ny/tax/income/supplemental/recapture_base/*.yaml` (all filing statuses)

### Standard Deductions (Page ~11, Line 34)
- [ ] `gov/states/ny/tax/income/deductions/standard/amount.yaml`
  - Single: $8,000
  - Joint: $16,050
  - Separate: $8,000
  - Head of household: $11,200
  - Surviving spouse: $16,050
  - Dependent elsewhere: $3,100

### Dependent Exemption (Page ~11, Line 36)
- [ ] `gov/states/ny/tax/income/exemptions/dependent.yaml` (value: $1,000)

### NYS EITC (Page ~27, Line 65)
- [ ] `gov/states/ny/tax/income/credits/eitc/match.yaml` (value: 30% of federal)
- [ ] `gov/states/ny/tax/income/credits/eitc/supplemental_match.yaml`

### Empire State Child Tax Credit (Page ~25-26, Line 63)
Post-2024 enhanced credit parameters already implemented:
- [ ] `gov/states/ny/tax/income/credits/ctc/post_2024/*.yaml` - verify values
  - Ages 0-3: $1,000 for 2025, $1,000 for 2026
  - Ages 4-16: $330 for 2025, $500 for 2026
  - Phase-out thresholds by filing status

### NYS Child and Dependent Care Credit (Page ~26, Line 64)
- [ ] `gov/states/ny/tax/income/credits/cdcc/*.yaml` - all parameters

### Real Property Tax Credit (Page ~27, Line 67)
- [ ] `gov/states/ny/tax/income/credits/real_property_tax/*.yaml`
  - max_agi: $18,000

### College Tuition Credit/Deduction (Page ~27, Line 68)
- [ ] `gov/states/ny/tax/income/credits/college_tuition/*.yaml`
- [ ] `gov/states/ny/tax/income/college_tuition/cap.yaml` ($10,000)

### Household Credit (Page ~12, Line 40)
- [ ] `gov/states/ny/tax/income/credits/household_credit/*.yaml`

### Energy Credits
- [ ] `gov/states/ny/tax/income/credits/solar_energy_systems_equipment/*.yaml`
- [ ] `gov/states/ny/tax/income/credits/geothermal_energy_system/*.yaml`

### Pension Exclusion (Page ~10, Line 29)
- [ ] `gov/states/ny/tax/income/agi/subtractions/pension_exclusion/*.yaml` (cap: $20,000, min_age: 59.5)

### Itemized Deductions Reduction (Page ~14-15)
- [ ] `gov/states/ny/tax/income/deductions/itemized/reduction/*.yaml`
- [ ] `gov/states/ny/tax/income/deductions/itemized/phase_out/*.yaml`

### Inflation Refund Credit (2025 only)
Already implemented - verify values:
- [ ] `gov/states/ny/tax/income/credits/inflation_refund/*.yaml`
  - Single/HoH: $200 (AGI < $75k), $150 ($75k-$150k)
  - Joint: $400 (AGI < $150k), $300 ($150k-$300k)

## NYC Parameters Requiring 2025 References

### NYC Tax Rates (Page ~40-41 of IT-201i)
- [ ] `gov/local/ny/nyc/tax/income/rates/single.yaml`
- [ ] `gov/local/ny/nyc/tax/income/rates/joint.yaml`
- [ ] `gov/local/ny/nyc/tax/income/rates/separate.yaml`
- [ ] `gov/local/ny/nyc/tax/income/rates/head_of_household.yaml`
- [ ] `gov/local/ny/nyc/tax/income/rates/surviving_spouse.yaml`

### NYC EITC (Page ~29, Line 72)
- [ ] `gov/local/ny/nyc/tax/income/credits/eitc/*.yaml`

### NYC School Tax Credit (Page ~20, Lines 69-70)
- [ ] `gov/local/ny/nyc/tax/income/credits/school/fixed/*.yaml`
  - Joint: $125, Single/HoH/Separate: $63
- [ ] `gov/local/ny/nyc/tax/income/credits/school/rate_reduction/*.yaml`

### NYC Household Credit (Page ~20, Lines 68b-68c)
- [ ] `gov/local/ny/nyc/tax/income/credits/household/*.yaml`

### NYC CDCC (Page ~26, Line 64a)
- [ ] `gov/local/ny/nyc/tax/income/credits/cdcc/*.yaml`

## New Programs to Model (with existing variables)

### 1. Central Business District Toll Credit (NEW for 2025)
- **Source**: https://www.tax.ny.gov/pit/credits/central-business-district-toll-credit.htm
- **Form**: IT-268
- **Eligibility**:
  - Primary residence in NYC CBD (Congestion Relief Zone)
  - NY AGI < $60,000
  - Paid CBD tolls not as business expense
- **Amount**: 100% of tolls paid
- **Refundable**: Yes
- **Implementation**: Would need new input variable for CBD tolls paid, then credit calculation

### 2. NYC Pass-Through Entity Tax Credit
- Available for tax years beginning after January 1, 2022
- Refundable credit for pass-through entity shareholders
- May require new modeling

### 3. NYC Income Tax Elimination Credit
- May reduce or eliminate NYC tax for low-income filers
- Check if already modeled

## Tests to Add

### 2025-Specific Integration Tests
Create tests in `policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/` that verify:

1. **Standard 2025 calculation** - Single filer with $50,000 income
2. **Supplemental tax** - Joint filers with $200,000 income (>$107,650 threshold)
3. **Empire State CTC 2025** - Family with children ages 2 and 8
4. **NYC resident 2025** - Full NYC + NYS calculation
5. **Inflation refund credit 2025** - Verify one-time credit amounts
6. **High-income filer** - Test 10.3% and 10.9% brackets

## Implementation Notes

1. **Reference format**: Add to each parameter's metadata.reference array:
   ```yaml
   - title: 2025 NY Form IT-201 Instructions Line XX
     href: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=YY
   ```

2. **Values unchanged**: Most 2025 values are unchanged from 2024. Document this in commits.

3. **Tax rate reductions**: Note that rates are scheduled to decrease in 2026-2027 per Section 601 of Tax Law.

4. **High-income surcharge**: Extended through 2032 (was set to expire 2027).

5. **SALT cap**: Federal cap increased to $40,000 for 2025 (affects itemized deductions).

## Related Forms to Reference

- IT-201: Full-year resident return
- IT-203: Part-year/nonresident return  
- IT-196: New York itemized deductions
- IT-214: Real property tax credit
- IT-215: EITC claim
- IT-216: Child and dependent care credit
- IT-272: College tuition credit/deduction
- IT-268: Central Business District toll credit (new)

## Breaking into Implementation Steps

To minimize memory usage and reduce implementation complexity, break into phases:

### Phase 1: Core Tax Structure (Parameter References Only)
- Add 2025 references to tax rates, standard deductions, exemptions

### Phase 2: NYS Credits
- Add 2025 references to EITC, CTC, CDCC, household credit, real property

### Phase 3: NYC Parameters
- Add 2025 references to all NYC tax and credit parameters

### Phase 4: New CBD Toll Credit
- Implement new Central Business District toll credit

### Phase 5: Integration Tests
- Add 2025-specific test cases

Update New York 2025 Individual Income Tax Model #7142

Description

Summary

Primary Reference

Parameters Requiring 2025 References

NYS Income Tax Rates (Page ~33-34 of IT-201i)

NYS Supplemental Tax (Page ~35-37 of IT-201i)

Standard Deductions (Page ~11, Line 34)

Dependent Exemption (Page ~11, Line 36)

NYS EITC (Page ~27, Line 65)

Empire State Child Tax Credit (Page ~25-26, Line 63)

NYS Child and Dependent Care Credit (Page ~26, Line 64)

Real Property Tax Credit (Page ~27, Line 67)

College Tuition Credit/Deduction (Page ~27, Line 68)

Household Credit (Page ~12, Line 40)

Energy Credits

Pension Exclusion (Page ~10, Line 29)

Itemized Deductions Reduction (Page ~14-15)

Inflation Refund Credit (2025 only)

NYC Parameters Requiring 2025 References

NYC Tax Rates (Page ~40-41 of IT-201i)

NYC EITC (Page ~29, Line 72)

NYC School Tax Credit (Page ~20, Lines 69-70)

NYC Household Credit (Page ~20, Lines 68b-68c)

NYC CDCC (Page ~26, Line 64a)

New Programs to Model (with existing variables)

1. Central Business District Toll Credit (NEW for 2025)

2. NYC Pass-Through Entity Tax Credit

3. NYC Income Tax Elimination Credit

Tests to Add

2025-Specific Integration Tests

Implementation Notes

Related Forms to Reference

Breaking into Implementation Steps

Phase 1: Core Tax Structure (Parameter References Only)

Phase 2: NYS Credits

Phase 3: NYC Parameters

Phase 4: New CBD Toll Credit

Phase 5: Integration Tests

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