Update Colorado 2025 Individual Income Tax Model #7055
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Starting implementation of Colorado 2025 individual income tax model updates. See issue PolicyEngine#7054 for full details and checklist. 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
- Unit tests for EITC with 50% match rate (co_eitc.yaml) - Unit tests for sales tax refund with 2025 brackets (co_sales_tax_refund.yaml) - Integration tests for complete tax calculation flows (integration.yaml) - Tests based on official documentation from Colorado DOR Key 2025 values tested: - Income tax rate: 4.4% - EITC match: 50% of federal EITC - Sales tax refund: Bracket-based ($19-$59 for single filers) - CTC max: $1,200 for ages 0-5 - Family Affordability Credit: $3,273 (ages 0-5), $2,455 (ages 6-16) Note: These tests require the corresponding parameter updates to pass. 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
Key value changes: - EITC match updated from 0.35 to 0.5 (50%) for 2025 per Book 104 - Sales tax refund scale: Added 2025 brackets with thresholds and amounts - Sales tax refund flat_amount_enabled: Set to false for 2025 - Family affordability credit amount: Updated to $3,273 for 2025 Added 2025 Book 104 reference to all ~55 Colorado income tax parameter files: - Credits: EITC, CDCC, CTC, family affordability, sales tax refund, care worker, TABOR, income qualified senior housing - Subtractions: Pension, military retirement, ABLE contribution, charitable contribution, CollegeInvest - Additions: Federal deductions, qualified business income deduction - Rate file Reference URL: https://tax.colorado.gov/sites/tax/files/documents/Book104_2025.pdf 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 @@
## main #7055 +/- ##
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- Coverage 100.00% 74.64% -25.36%
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Files 11 3550 +3539
Lines 146 51113 +50967
Branches 0 263 +263
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+ Hits 146 38151 +38005
- Misses 0 12934 +12934
- Partials 0 28 +28
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Updates 59 Colorado income tax parameter files to include specific page anchors (#page=XX) for all 2025 Book 104 references, making it easier to verify values against the official Colorado Individual Income Tax Filing Guide. 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
DTrim99
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Dec 29, 2025
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PR Review Summary
This PR updates Colorado income tax parameters and tests for tax year 2025. The changes are comprehensive and well-documented.
Strengths
Parameter Updates:
- EITC match rate correctly updated from 0.35 to 0.50 for 2025 (verified against Colorado Department of Revenue guidance)
- Family Affordability Credit amount properly updated to $3,273 for 2025
- Sales Tax Refund brackets updated with new 2025 thresholds and amounts
- All 65 parameter files updated with proper 2025 Book 104 references
Test Coverage:
- Comprehensive unit tests for 2025 EITC (including realistic earned income scenario)
- Extensive 2025 sales tax refund bracket tests covering all income brackets
- Good integration tests covering tax calculations, CTC, and Family Affordability Credit
- Tests properly use underscore thousands separators (e.g., 52_000, 3_273)
Documentation:
- All parameter files include proper 2025 reference to Book 104 PDF
- Comment explaining EITC match rate change
- Changelog entry properly formatted
Minor Observations
-
Implementation tracking file: The .implementation_co_2025_income_tax.md file in the repo root is unusual - typically implementation tracking would be done via issues/PRs rather than a committed file. Consider removing after merge.
-
EITC parameter comment: The comment on line 11 of match.yaml says "# 2025 is 50% per Book 104." - this is accurate based on current Colorado EITC guidance which confirms 50% for 2025.
Validation Results
- CI Status: All checks passing (lint, tests, structural tests)
- Code Coverage: All modified lines covered by tests
- Parameter Values: EITC match rate of 50% verified against official Colorado sources
- Reference Quality: All 2025 references point to Book104_2025.pdf with specific page numbers
Summary
This is a clean, well-documented parameter update with comprehensive test coverage. The 2025 EITC match rate of 50% has been verified against official Colorado Department of Revenue sources. All tests pass and the implementation follows PolicyEngine conventions.
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Summary
Implements #7054 - Updates Colorado income tax parameters and tests for tax year 2025.
Changes
Primary Source
2025 Colorado Individual Income Tax Filing Guide (Book 104)
Test plan
🤖 Generated with Claude Code