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Policy Parameters for CBO's Capital Tax Model (CapTax)

Policy parameters files are located in /captax/captax/data/inputs/policy_parameters/.

That directory contains:

  • CapTax_policy_parameters.xlsx: This is a template tool to generate new policy parameters *.csv files. (Or you may edit the *.csv files directly.) There is additional documentation about the policy parameters in that file.
  • policies.yml: This file contains the list of policies the model will simulate.
  • policy_parameters_Current-Law_comprehensive.csv: This file contains policy parameters with values set to simulate Current-Law using the comprehensive perspective.
  • policy_parameters_Current-Law_uniformity.csv: This file contains policy parameters with values set to simulate Current-Law using the tax uniformity perspective.
  • policy_parameters_permitted_ranges.csv: This file contains the permitted ranges for all the policy parameters used in the CapTax model. If a policy parameter is set outside of this range, the model will produce an error and will not run.

The policy parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv are organized into the following categories:

Note: The policy suffix parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv are character strings that represent suffixes for files containing larger policy parameter matrices, which are in the following subdirectories:

Each subdirectory contains *.csv files with values set to simulate current law.

Tax rate parameters—profits and imputed rent

c_corp_tax_rate

Description: Marginal tax rate on the profits of C corporations

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: Internal Revenue Code

Note: 0.2100 by statute

pass_thru_tax_rate

Description: Average marginal income tax rate on the profits of pass-through entities

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Notes:
1. Should be calculated with the Section 199A deduction in place. That will capture the interaction of the deduction with the marginal rate brackets but will not capture the deduction itself.
2. Under the tax uniformity perspective, this should have the same value as other tax rates estimated using the standard rate schedule

seca_tax_rate

Description: Average marginal SECA tax rate on the profits of pass-through entities

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Must account for zero rate on S corporations and many partnerships

repurchases_tax_rate

Description: Marginal excise tax rate on stock repurchases

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: Internal Revenue Code

Note: 0.0100 by statute

ooh_tax_rate

Description: Marginal tax rate on the imputed rent from owner-occupied housing

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: Internal Revenue Code

Note: 0.0000 by statute

Tax rate parameters—investment income

dividend_inc_tax_rate

Description: Average marginal tax rate on dividends paid by domestic C corporations

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Under the tax uniformity perspective, this should have the same value as other tax rates subject to a maximum rate of 20 percent

cap_gains_short_term_tax_rate

Description: Average marginal tax rate on capital gains accrued on domestic C corporation stock and realized within one year of purchase

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Under the tax uniformity perspective, this should have the same value as other tax rates estimated using the standard rate schedule

cap_gains_long_term_tax_rate

Description: Average marginal tax rate on capital gains accrued on domestic C corporation stock and realized more than one year after purchase

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO individual income tax model

Note: Under the tax uniformity perspective, this should have the same value as other tax rates subject to a maximum rate of 20 percent

cap_gains_at_death_tax_rate

Description: Average marginal tax rate on capital gains accrued on domestic C corporation stock and not realized during purchaser’s lifetime

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Income tax rate is zero by statute. CBO did not estimate an estate tax rate

interest_inc_from_biz_tax_rate

Description: Average marginal tax rate on interest received from domestic businesses

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Under the tax uniformity perspective, this should have the same value as other tax rates estimated using the standard rate schedule

interest_inc_from_ooh_tax_rate

Description: Average marginal tax rate on interest received from homeowners

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Should be the same as tax_rates[‘interest_inc’][‘biz’] unless owner-occupied housing is being removed from the tax code altogether, in which case it should be 0.0000

ret_plan_deferred_tax_rate

Description: Average marginal tax rate on withdrawals from whole life insurance policies and distributions from nonqualified annuities

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Under the tax uniformity perspective, this should have the same value as other tax rates estimated using the standard rate schedule

ret_plan_nontaxable_tax_rate

Description: Average marginal tax rate on investment income of nonprofits and withdrawals from IRAs and qualified retirement plans

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Note: Income tax rate is zero by statute. CBO did not estimate rates for unrelated business income tax or penalty tax on early withdrawals from retirement plans

Tax rate parameters—itemized deductions

mortg_interest_deduction_tax_rate

Description: Average marginal tax rate that applies to home mortgage interest payments

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Value should account for imputed home mortgage interest of nonitemizers. If it assigns a rate of zero to nonitemizers, then mortg_interest_deductible_share must be 1.0000

prop_tax_deduction_tax_rate

Description: Average marginal tax rate that applies to property taxes paid on owner-occupied housing

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Value should account for imputed property taxes of nonitemizers. If it assigns a rate of zero to nonitemizers, then prop_tax_deductible_share must be 1.0000

Deduction parameters

pass_thru_inc_shares_below_thresholds

Description: Share of pass-through entity profits that falls below the income threshold above which the Section 199A deduction is limited for certain industries

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: In addition to the amounts below the phaseout range, the value should account for amounts in the phaseout range that have not been phased out

pass_thru_eligibility_below_thresholds

Description: Share of pass-through income below income thresholds for calculation of Section 199A deduction adjustments that is eligible for the deduction

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO's Microsimulation Tax Model

Note: Accounts for portion of Section 199A deduction disallowed below income threshold because of taxable income limit

c_corp_interest_deductible_share

Description: Share of interest paid by C Corporations that can be deducted in the year it is paid

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Note: Because differences between legal forms is driven by firm size, both c_corp_interest_deductible_share and pass_thru_interest_deductible_share should contain the same values under the tax uniformity perspective

pass_thru_interest_deductible_share

Description: Share of interest paid by pass-through entities that can be deducted in the year it is paid

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Note: Because differences between legal forms is driven by firm size, both c_corp_interest_deductible_share and pass_thru_interest_deductible_share should contain the same values under the tax uniformity perspective

mortg_interest_deductible_share

Description: Share of interest paid by homeowners that can be deducted in the year it is paid

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO’s Microsimulation Tax Model

Note: Value must account for zero share for nonitemizers unless that was factored into mortg_interest_deduction_tax_rate, in which case this value must be 1.0000

prop_tax_deductible_share

Description: Share of property taxes paid by homeowners that can be deducted in the year it is paid

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO’s Microsimulation Tax Model

Note: Value must account for zero share for nonitemizers unless that was factored into prop_tax_deduction_tax_rate, in which case this value must be 1.0000

Timing adjustment parameters reflecting fluctuating rates of return

c_corp_net_inc_timing_adjustment

Description: Present value divided by nominal value of C corporation net income

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

pass_thru_net_inc_timing_adjustment

Description: Present value divided by nominal value of pass-through entity net income

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

seca_net_inc_timing_adjustment

Description: Present value divided by nominal value of SECA net income

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

c_corp_deductions_timing_adjustment

Description: Present value divided by nominal value of C corporation deductions

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

pass_thru_deductions_timing_adjustment

Description: Present value divided by nominal value of pass-through entity deductions

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

seca_deductions_timing_adjustment

Description: Present value divided by nominal value of SECA deductions

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

c_corp_credits_timing_adjustment

Description: Present value divided by nominal value of C corporation credits

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

pass_thru_credits_timing_adjustment

Description: Present value divided by nominal value of pass-through entity credits

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Available to account for the consequences of fluctuating rates of return. Set to 1.0000

Annual changes to holding period parameters

change_cap_gains_short_term_share

Description: Additive change to the value of cap_gains_short_term_share in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Notes: Automatically adjusts residual "long-term" share. Available to simulate proposals to tax carried interest as regular income. Set to 0.0000

change_cap_gains_at_death_share

Description: Additive change to the value of cap_gains_at_death_share in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Year

Source: CBO

Note: Set to 0.0000

change_cap_gains_short_term_holding_period

Description: Additive change to the value of cap_gains_short_term_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Notes: Available to simulate proposals to change the one-year threshold dividing short-term gains from long-term gains. Set to 0.0000

change_cap_gains_long_term_holding_period

Description: Additive change to the value of cap_gains_long_term_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Notes: Available to simulate proposals to change the one-year threshold dividing short-term gains from long-term gains. Set to 0.0000

change_cap_gains_at_death_holding_period

Description: Additive change to the value of cap_gains_at_death_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Note: Set to 0.0000

change_ret_plan_deferred_holding_period

Description: Additive change to the value of ret_plan_deferred_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Note: Set to 0.0000

change_ret_plan_nontaxable_holding_period

Description: Additive change to the value of ret_plan_nontaxable_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Notes: Available to simulate proposals to change the age before which withdrawals from retirement plans are subject to penalty tax. Set to 0.0000

change_inventories_holding_period

Description: Additive change to the value of inventories_holding_period in /captax/captax/data/inputs/environment_parameters/environment_parameters.csv

Units: Years

Permitted Range: No limits

Dimensions: Years

Source: CBO

Note: Set to 0.0000

Policy suffix parameters

The following set of parameters are character strings that represent suffixes for files containing larger policy parameter matrices. Those larger policy parameter matrices are in the following subdirectories:

recovery_periods

Description: Policy suffix of file containing depreciation recovery periods by detailed industry and asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/recovery_periods_[POLICY_SUFFIX].csv

acceleration_rates

Description: Policy suffix of file containing depreciation acceleration rates by detailed industry and asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/acceleration_rates_[POLICY_SUFFIX].csv

straight_line_flags

Description: Policy suffix of file containing flags by detailed industry and asset type that signal (a) whether declining-balance depreciation should switch to straight-line depreciation when it becomes advantageous and (b) whether tax depreciation should be set equal to economic depreciation

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/straight_line_flags_[POLICY_SUFFIX].csv

inflation_adjustments

Description: Policy suffix of file containing shares of undepreciated basis to be indexed for inflation by detailed industry and asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/inflation_adjustments_[POLICY_SUFFIX].csv

c_corp_sec_179_expens_shares

Description: Policy suffix of files containing shares of investment by detailed industry and asset type eligible for expensing by c corporations under Section 179

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/sec_179_expens_shares_[POLICY_SUFFIX].csv

pass_thru_sec_179_expens_shares

Description: Policy suffix of files containing shares of investment by detailed industry and asset type eligible for expensing by pass-through entities under Section 179

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/sec_179_expens_shares_[POLICY_SUFFIX].csv

other_expens_shares

Description: Policy suffix of file containing shares of investment by detailed industry and asset type eligible for expensing under sections other than 179

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /depreciation_adjustments/other_expens_shares_[POLICY_SUFFIX].csv

itc_rates

Description: Policy suffix of file containing investment tax credit rates by standard industry and asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /investment_tax_credit_adjustments/itc_rates_[POLICY_SUFFIX].csv

itc_nondeprcbl_bases

Description: Policy suffix of file containing shares of investment by standard industry and asset type for which an investment tax credit was claimed that cannot also be depreciated

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /investment_tax_credit_adjustments/itc_nondeprcbl_bases_[POLICY_SUFFIX].csv

ptc_rates

Description: Policy suffix of file containing production tax credit rates by standard industry and asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /production_tax_credit_adjustments/ptc_rates_[POLICY_SUFFIX].csv

sec_199A_adjustments

Description: Policy suffix of file containing parameters controlling Section 199A deductions by detailed industry

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: The parameters in the selected file are applied only to pass-through entities

Note: Go to documentation for /tax_rate_adjustments/sec_199A_adjustments_[POLICY_SUFFIX].csv

c_corp_industry_adjustments

Description: Policy suffix of file containing parameters controlling indirect and targeted tax adjustments for C corporations by detailed industry

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /tax_rate_adjustments/industry_adjustments_[POLICY_SUFFIX].csv

pass_thru_industry_adjustments

Description: Policy suffix of file containing parameters controlling indirect and targeted tax adjustments for pass-through entities by detailed industry

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /tax_rate_adjustments/industry_adjustments_[POLICY_SUFFIX].csv

c_corp_asset_adjustments

Description: Policy suffix of file containing parameters controlling indirect and targeted tax adjustments for C corporations by asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /tax_rate_adjustments/asset_adjustments_[POLICY_SUFFIX].csv

pass_thru_asset_adjustments

Description: Policy suffix of file containing parameters controlling indirect and targeted tax adjustments for pass-through entities by asset type

Permitted Range: 9 characters (files supplied follow a xxxx_yyyy format, in which the four x characters identify the law being simulated and the four y characters identify the time period to which they apply)

Dimensions: Years

Source: CBO

Note: Go to documentation for /tax_rate_adjustments/asset_adjustments_[POLICY_SUFFIX].csv

Account category parameters

The following 18 parameters represent the shares of marginal savings directed to a specific account category (taxable, deferred, or nontaxable) by legal form (c_corp, pass_thru, or ooh) and financing source (equity or debt).

c_corp_equity_account_category_share_taxable

Description: Share of marginal C corporation equity directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

c_corp_equity_account_category_share_deferred

Description: Share of marginal C corporation equity directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

c_corp_equity_account_category_share_nontaxable

Description: Share of marginal C corporation equity directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

c_corp_debt_account_category_share_taxable

Description: Share of marginal C corporation debt directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

c_corp_debt_account_category_share_deferred

Description: Share of marginal C corporation debt directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

c_corp_debt_account_category_share_nontaxable

Description: Share of marginal C corporation debt directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_equity_account_category_share_taxable

Description: Share of marginal pass-through equity directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_equity_account_category_share_deferred

Description: Share of marginal pass-through equity directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_equity_account_category_share_nontaxable

Description: Share of marginal pass-through equity directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_debt_account_category_share_taxable

Description: Share of marginal pass-through debt directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_debt_account_category_share_deferred

Description: Share of marginal pass-through debt directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

pass_thru_debt_account_category_share_nontaxable

Description: Share of marginal pass-through debt directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_equity_account_category_share_taxable

Description: Share of marginal owner-occupied equity directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_equity_account_category_share_deferred

Description: Share of marginal owner-occupied equity directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_equity_account_category_share_nontaxable

Description: Share of marginal owner-occupied equity directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_debt_account_category_share_taxable

Description: Share of marginal owner-occupied debt directed to taxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_debt_account_category_share_deferred

Description: Share of marginal owner-occupied debt directed to temporarily deferred accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

ooh_debt_account_category_share_nontaxable

Description: Share of marginal owner-occupied debt directed to nontaxable accounts

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

Dimensions: Years

Source: CBO

Note: For each legal-form/source-of-financing combination, the sum of the three account category values must equal 1.0000

/depreciation_adjustments/ parameter files

The files in this directory contain parameter matrices with policy suffixes in their filenames. Which parameter matrix file gets used for any given year in the model is specified by the POLICY_SUFFIX set in the Policy suffix parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv.

/depreciation_adjustments/recovery_periods_[POLICY_SUFFIX].csv

Description: Depreciation recovery periods

Units: Years

Permitted Range: 0.0 – 100.0

File(s) Supplied:
recovery_periods_CLaw_perm.csv (all years, reflecting 5-year amortization of R&D)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO, based on IRS Publication 946, Appendix B

Note: A value of 100000.0 can be used for nondepreciable assets, such as land. Inventory values are ignored in the model

/depreciation_adjustments/acceleration_rates_[POLICY_SUFFIX].csv

Description: Depreciation acceleration rates for declining-balance method

Units: Rate (in decimal format)

Permitted Range: 0.0000 - 5.0000

File(s) Supplied: acceleration_rates_CLaw_perm.csv (all years)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO, based on IRS Publication 946

Note: Use 1.0 for straight-line depreciation. Inventory values are ignored in the model

/depreciation_adjustments/straight_line_flags_[POLICY_SUFFIX].csv

Description: Flags that signal whether declining-balance depreciation should switch to straight-line depreciation when it becomes advantageous and whether to conform tax depreciation to economic depreciation

Permitted Range:
-1 to conform tax depreciation to economic depreciation
 1 to switch from declining-balance to straight-line depreciation when it becomes advantageous to do so
 0 otherwise

File(s) Supplied: straight_line_flags_CLaw_perm.csv (all years)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO, based on Internal Revenue Code

Note: Inventory values are ignored in the model

/depreciation_adjustments/inflation_adjustments_[POLICY_SUFFIX].csv

Description: Shares of undepreciated basis to be indexed for inflation

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied: inflation_adjustments_CLaw_perm.csv (all years)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO, based on Internal Revenue Code

Note: Inventory values reflect share using LIFO. Otherwise, use 1.0000 when conforming tax depreciation to economic depreciation

/depreciation_adjustments/sec_179_expens_shares_[POLICY_SUFFIX].csv

Description: Shares of investment eligible for expensing under Section 179

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
sec_179_expens_CLPT_perm.csv (all years, pass-through entities only—for use under the comprehensive perspective)
sec_179_expens_CLCC_perm.csv (all years, C corporations only—for use under the comprehensive perspective)
sec_179_expens_CLaw_perm.csv (all years, all businesses—for use under the tax uniformity perspective)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO

Notes: Under the comprehensive perspective, values vary by legal form and industry to reflect differences in firm sizes. Under the tax uniformity perspective, all legal forms and industries receive the same value. Variation by asset type reflects statutory eligibility that is reflected under both perspectives

/depreciation_adjustments/other_expens_shares_[POLICY_SUFFIX].csv

Description: Shares of investment eligible for expensing under sections other than 179

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
other_expens_share_CLaw_2024.csv (reflecting 5-year amortization of R&D and 40% phaseout of bonus depreciation)
other_expens_share_CLaw_2025.csv (also reflecting 60% phaseout of bonus depreciation)
other_expens_share_CLaw_2026.csv (also reflecting 80% phaseout of bonus depreciation)
other_expens_share_CLaw_perm.csv (2027 and beyond, reflecting full phaseout of bonus depreciation)

Dimensions: Detailed industry (rows) by asset type (columns)

Source: CBO, based on Internal Revenue Code

/investment_tax_credit_adjustments/ parameter files

The files in this directory contain parameter matrices with policy suffixes in their filenames. Which parameter matrix file gets used for any given year in the model is specified by the POLICY_SUFFIX set in the Policy suffix parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv.

/investment_tax_credit_adjustments/itc_rates_[POLICY_SUFFIX].csv

Description: Investment tax credit rates

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
itc_rates_CLaw_2024.csv (2024 values for the solar and wind energy ITC, the advanced manufacturing ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2025.csv (2025 values for the solar and wind energy ITC, the advanced manufacturing ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2026.csv (2026 values for the solar and wind energy ITC, the advanced manufacturing ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2027.csv (2027 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2028.csv (2028 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2029.csv (2029 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2030.csv (2030 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2031.csv (2031 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2032.csv (2032 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2033.csv (2033 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)
itc_rates_CLaw_2034.csv (2034 values for the solar and wind energy ITC, and the full R&E and orphan drug credits)

Dimensions: Standard industry (rows) by asset type (columns)

Source: CBO, based on SOI Tables for Form 6765

Note: Currently used for R&E credit, orphan drug credit, advanced manufacturing ITC, and solar and wind ITC

/investment_tax_credit_adjustments/itc_nondeprcbl_bases_[POLICY_SUFFIX].csv

Description: Shares of investment for which an investment tax credit was claimed that cannot also be depreciated

Units: Share (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
itc_nondeprcbl_bases_CLaw_full.csv (values of 1.0 in all cells other than for the solar and wind energy ITC, which reduces cost recovery deductions by a factor of 0.5)

Dimensions: Standard industry (rows) by asset type (columns)

Source: CBO

/production_tax_credit_adjustments/ parameter files

The files in this directory contain parameter matrices with policy suffixes in their filenames. Which parameter matrix file gets used for any given year in the model is specified by the POLICY_SUFFIX set in the Policy suffix parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv.

/production_tax_credit_adjustments/ptc_rates_[POLICY_SUFFIX].csv

Description: Production tax credit rates

Units: Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
ptc_rates_CLaw_2024.csv (2024 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2025.csv (2025 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2026.csv (2026 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2027.csv (2027 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2028.csv (2028 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2029.csv (2029 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2030.csv (2030 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2031.csv (2031 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2032.csv (2032 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2033.csv (2033 values for the solar and wind energy PTC, and the advanced manufacturing PTC)
ptc_rates_CLaw_2034.csv (2034 values for the solar and wind energy PTC, and the advanced manufacturing PTC)

Dimensions: Standard industry (rows) by asset type (columns)

Source: CBO

Note: Currently used for solar and wind energy PTC, and advanced manufacturing PTC

/tax_rate_adjustments/ parameter files

The files in this directory contain parameter matrices with policy suffixes in their filenames. Which parameter matrix file gets used for any given year in the model is specified by the POLICY_SUFFIX set in the Policy suffix parameters in policy_parameters_Current-Law_comprehensive.csv and policy_parameters_Current-Law_uniformity.csv.

/tax_rate_adjustments/sec_199A_adjustments_[POLICY_SUFFIX].csv

Description: Two different parameters:
1. Share of qualified business income (above the taxable income threshold) eligible for Section 199A deduction
2. Rate of Section 199A deduction

Units:
1. Share (in decimal format)
2. Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
sec_199A_adjustments_CLaw_temp.csv (2024-2025, reflecting Section 199A deduction of 20%)
sec_199A_adjustments_CLaw_perm.csv (2026 and beyond, reflecting expiration of Section 199A)

Dimensions: Detailed industry

Source: CBO, based on Internal Revenue Code

/tax_rate_adjustments/industry_adjustments_[POLICY_SUFFIX].csv

Description: Two different parameters:
1. Share of net business income eligible for other industry-specific adjustment
2. Rate of other industry-specific adjustment

Units:
1. Share (in decimal format)
2. Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied:
industry_adjustments_CLaw_perm.csv (values of 0.0 in all cells)

Dimensions: Detailed industry

Source: CBO, based on Internal Revenue Code

Note: Available for simulating the pre-2017 deduction for domestic production activities

/tax_rate_adjustments/asset_adjustments_[POLICY_SUFFIX].csv

Description: Two different parameters:
1. Share of net business income eligible for asset-type-specific adjustment
2. Rate of asset-type-specific adjustment

Units:
1. Share (in decimal format)
2. Rate (in decimal format)

Permitted Range: 0.0000 to 1.0000

File(s) Supplied: asset_adjustments_CLaw_perm.csv (values of 0.0 in all cells)

Dimensions: Asset type

Source: CBO, based on Internal Revenue Code

Note: Available for simulating a patent box or other special tax rate targeted to specific asset types