New Brunswick Tuition and Education Amount

changelog_entry.yaml

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+- bump: minor
+  changes:
+    added:
+    - New Brunswick tuition and education amount.

policyengine_canada/parameters/gov/provinces/nb/tax/income/credits/tuition_amount/eligible_age.yaml

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+description: New Brunswick provides tuition credit amount for filers above this age.
+values:
+  2022-01-01: 16
+metadata:
+  unit: year
+  label: New Brunswick tuition credit age eligibility
+  reference: 
+  - title: Students and income tax
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pub/p105/p105-22e.pdf#page=11

policyengine_canada/parameters/gov/provinces/nb/tax/income/credits/tuition_amount/income_threshold.yaml

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+description: New Brunswick phases taxable income out for tuition amount at this rate, based on taxable income.
+brackets:
+  - threshold: 
+      2022-01-01: 0
+    rate: 
+      2022-01-01: 0.094
+  - threshold:
+      2022-01-01: 44_887
+    rate:
+      2022-01-01: 0.1482
+  - threshold: 
+      2022-01-01: 89_775
+    rate: 
+      2022-01-01: 0.1652
+  - threshold:
+      2022-01-01: 145_955
+    rate: 
+      2022-01-01: 0.1784
+  - threshold:
+      2022-01-01: 166_280
+    rate: 
+      2022-01-01: 0.203
+
+metadata:
+  type: marginal_rate
+  threshold_unit: currency-CAD
+  rate_unit: /1
+  label: New Brunswick taxable income phase out rate
+  reference:
+    - title: New Brunswick tuition and education amounts
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-s11/5004-s11-22e.pdf#page=1
+    - title: New Brunswick tax and credits
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-c/5004-c-22e.pdf#page=1

policyengine_canada/parameters/gov/provinces/nb/tax/income/credits/tuition_amount/rate.yaml

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+description: New Brunswick phases tuition credit amount for tax on taxable income at this rate.
+values:
+  2022-01-01: 0.094
+metadata:
+  unit: currency-CAD
+  label: New Brunswick tax on taxable income rate
+  reference:
+    - title: New Brunswick tuition and education amounts
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-s11/5004-s11-22e.pdf#page=1
+      # The tuition credit amount is not mentioned in the NB income tax act

policyengine_canada/parameters/gov/provinces/nb/tax/income/credits/tuition_amount/tuition_threshold.yaml

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+description: New Brunswick provides tuition credit amount for tuition expense above this amount.
+values: 
+  2022-01-01: 100
+metadata:
+  unit: currency-CAD
+  period: year
+  label: New Brunswick tuition threshold
+  reference:
+  - title: 2023 New Brunswick Personal Tax Credits Return
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1nb/td1nb-23e.pdf#page=1

policyengine_canada/tests/gov/provinces/nb/tax/income/credits/tuition_amount/nb_tuition_credit.yaml

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+- name: Lowest tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    nb_taxable_income: 44_887
+    nb_tuition_credit_amount_income: 20_000
+    tuition_expenses: 10_000
+  output:
+    nb_tuition_credit: 10_000
+
+- name: Second tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    nb_taxable_income: 54_887
+    nb_tuition_credit_amount_income: 20_000
+    tuition_expenses: 10_000
+  output:
+    nb_tuition_credit: 10_000
+
+- name: Third tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    nb_taxable_income: 139_775
+    nb_tuition_credit_amount_income: 20_000
+    tuition_expenses: 50_000
+  output:
+    nb_tuition_credit: 50_000
+
+- name: Fourth tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    nb_taxable_income: 145_965
+    nb_tuition_credit_amount_income: 100_000
+    tuition_expenses: 150_000
+  output:
+    nb_tuition_credit: 114_409.57
+
+- name: Highest tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    nb_taxable_income: 167_280
+    nb_tuition_credit_amount_income: 100_000
+    tuition_expenses: 160_000
+  output:
+    nb_tuition_credit: 155_124.42

policyengine_canada/tests/gov/provinces/nb/tax/income/credits/tuition_amount/nb_tuition_credit_eligibility.yaml

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+- name: Age eligible and tuition ineligible
+  period: 2023
+  input:
+    province_code: NB
+    age: 17
+    tuition_expenses: 50
+  output:
+    nb_tuition_credit_eligibility: false
+
+- name: Age eligible and tuition eligible
+  period: 2023
+  input:
+    province_code: NB
+    age: 16
+    tuition_expenses: 101
+  output:
+    nb_tuition_credit_eligibility: true
+
+- name: Age ineligible and tuition eligible
+  period: 2023
+  input:
+    province_code: NB
+    age: 10
+    tuition_expenses: 200
+  output:
+    nb_tuition_credit_eligibility: false
+
+- name: Age ineligible and tuition ineligible
+  period: 2023
+  input:
+    province_code: NB
+    age: 10
+    tuition_expenses: 30
+  output:
+    nb_tuition_credit_eligibility: false

policyengine_canada/variables/gov/provinces/nb/tax/income/credits/tuition_amount/nb_tuition_credit.py

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+from policyengine_canada.model_api import *
+
+
+class nb_tuition_credit(Variable):
+    value_type = float
+    entity = Person
+    label = "New Brunswick tuition credit"
+    definition_period = YEAR
+    defined_for: "nb_tuition_credit_eligibility"
+    reference = (
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-s11/5004-s11-22e.pdf#page=1",  # Line 10
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-c/5004-c-22e.pdf#page=1",  # Line 8
+    )
+
+    def formula(person, period, parameters):
+        age = person("age", period)
+        tuition = person("tuition_expenses", period)  # line 2
+        taxable_income = person("nb_taxable_income", period)  # line 4
+        tuition_income = person(
+            "nb_tuition_credit_amount_income", period
+        )  # line 5
+        p = parameters(
+            period
+        ).gov.provinces.nb.tax.income.credits.tuition_amount
+        reduced_taxable_income = max_(taxable_income - tuition_income, 0)
+        tax_on_taxable_income = p.income_threshold.calc(taxable_income)
+        reduced_tax_on_taxable_income = max_(
+            (tax_on_taxable_income / p.rate) - tuition_income,
+            0,
+        )
+        return select(
+            [
+                taxable_income <= p.income_threshold.thresholds[1],
+                taxable_income > p.income_threshold.thresholds[1],
+            ],
+            [
+                min_(reduced_taxable_income, tuition),
+                min_(reduced_tax_on_taxable_income, tuition),
+            ],
+        )

policyengine_canada/variables/gov/provinces/nb/tax/income/credits/tuition_amount/nb_tuition_credit_amount_income.py

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+from policyengine_canada.model_api import *
+
+
+class nb_tuition_credit_amount_income(Variable):
+    value_type = float
+    entity = Person
+    label = "New Brunswick income pre tax income for tuition credit amount"
+    unit = CAD
+    definition_period = YEAR
+    reference = (
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-c/5004-c-22e.pdf#page=2",  # Line 31
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-s11/5004-s11-22e.pdf#page=1",  # Line 5
+    )
+    defined_for = ProvinceCode.NB

policyengine_canada/variables/gov/provinces/nb/tax/income/credits/tuition_amount/nb_tuition_credit_eligibility.py

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+from policyengine_canada.model_api import *
+
+
+class nb_tuition_credit_eligibility(Variable):
+    value_type = bool
+    entity = Person
+    label = "Eligible for the New Brunswick tuition credit"
+    definition_period = YEAR
+    reference = (
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pub/p105/p105-22e.pdf#page=11",  # Tuition Amount
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1nb/td1nb-23e.pdf#page=1",  # Line 4
+    )
+    defined_for = ProvinceCode.NB
+
+    def formula(person, period, parameters):
+        p = parameters(
+            period
+        ).gov.provinces.nb.tax.income.credits.tuition_amount
+        age = person("age", period)
+        tuition = person("tuition_expenses", period)
+        return (age >= p.eligible_age) & (tuition >= p.tuition_threshold)