British Columbia Tuition and Education Credits

changelog_entry.yaml

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+- bump: minor
+  changes:
+    added:
+    - British Columbia tuition and education credits.

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

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+description: British Columbia qualifies filers for the tuition credit above this age.
+values:
+  2022-01-01: 16
+metadata:
+  unit: year
+  label: British Columbia tuition credit age eligibility
+  reference: 
+  - title: British Columbia eligible tuition fees
+  - href: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/eligible-tuition-fees.html

policyengine_canada/parameters/gov/provinces/bc/tax/income/credits/tuition_amount/lowest_tax_rate.yaml

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+description: British Columbia divides the tax on taxable income by the lowest tax rate to calculate the tuition credit.
+values:
+  2022-01-01: 0.0506
+metadata:
+  unit: currency-CAD
+  # "appropriate percentage" for a taxation year means the lowest percentage specified in section 4.1 (1) 
+  # that is applicable in determining tax payable under this Act for the year
+  label: British Columbia lowest tax rate # appropriate percentage
+  reference:
+    - title: 2023 British Columbia income tax act § 4.6
+      href: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96215_00_multi#section4.6
+    - title: 2022 British Columbia tuition and education amounts, BC(S11) 
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5004-s11/5004-s11-22e.pdf#page=1

policyengine_canada/parameters/gov/provinces/bc/tax/income/credits/tuition_amount/tax_bracket_rate.yaml

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+description: British Columbia taxes individuals based on their income at a progressive rate. 
+brackets:
+  - threshold: 
+      2022-01-01: 0
+    rate: 
+      2022-01-01: 0.0506
+  - threshold:
+      2022-01-01: 43_070
+    rate:
+      2022-01-01: 0.077
+  - threshold: 
+      2022-01-01: 86_141
+    rate: 
+      2022-01-01: 0.105
+  - threshold:
+      2022-01-01: 98_901
+    rate: 
+      2022-01-01: 0.1229
+  - threshold:
+      2022-01-01: 120_094
+    rate: 
+      2022-01-01: 0.147
+  - threshold:
+      2022-01-01: 162_832
+    rate: 
+      2022-01-01: 0.168
+  - threshold:
+      2022-01-01: 227_091
+    rate: 
+      2022-01-01: 0.205
+
+
+metadata:
+  type: marginal_rate
+  threshold_unit: currency-CAD
+  rate_unit: /1
+  label: British Columbia tax brackets rate
+  reference:
+    - title: 2023 British Columbia income tax act § 4.1
+      href: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96215_00_multi#section4.1
+    - title: 2022 British Columbia tuition and education amounts, Schedule BC(S11)
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5010-s11/5010-s11-22e.pdf#page=1
+    - title: 2022 British Columbia Tax, BC428
+      href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5010-c/5010-c-22e.pdf#page=1

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

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+description: British Columbia qualifies filers for the tuition tax credit with tuition expenses above this amount.
+values: 
+  2022-01-01: 100
+metadata:
+  unit: currency-CAD
+  period: year
+  label: British Columbia tuition credit tuition threshold
+  reference:
+  - title: 2023 British Columbia Personal Tax Credits Return, TD1BC
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1nb/td1nb-23e.pdf#page=1
+  # The tuition credit section of British Columbia income act refered to section 118.5 of federal act 
+  - title: 2023 Canada Income Tac Act § 118.5(1.1)
+    href: https://laws-lois.justice.gc.ca/PDF/I-3.3.pdf#page=1566

policyengine_canada/tests/gov/provinces/bc/tax/income/credits/tuition_amount/bc_tuition_credit.yaml

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+- name: Lowest tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    bc_taxable_income: 44_887
+    bc_comprehensive_tax_credits: 20_000
+    tuition_expenses: 10_000
+  output:
+    bc_tuition_credit: 10_000
+
+- name: Second tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    bc_taxable_income: 54_887
+    bc_comprehensive_tax_credits: 20_000
+    tuition_expenses: 10_000
+  output:
+    bc_tuition_credit: 10_000
+
+- name: Third tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    bc_taxable_income: 139_775
+    bc_comprehensive_tax_credits: 20_000
+    tuition_expenses: 50_000
+  output:
+    bc_tuition_credit: 50_000
+
+- name: Fourth tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    bc_taxable_income: 145_965
+    bc_comprehensive_tax_credits: 100_000
+    tuition_expenses: 150_000
+  output:
+    bc_tuition_credit: 150_000
+
+- name: Highest tax on taxable income threshold
+  period: 2023
+  absolute_error_margin: 0.01
+  input: 
+    bc_taxable_income: 167_280
+    bc_comprehensive_tax_credits: 100_000
+    tuition_expenses: 160_000
+  output:
+    bc_tuition_credit: 160_000

policyengine_canada/tests/gov/provinces/bc/tax/income/credits/tuition_amount/bc_tuition_credit_eligibility.yaml

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

policyengine_canada/variables/gov/provinces/bc/tax/income/credits/tuition_amount/bc_comprehensive_tax_credits.py

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+from policyengine_canada.model_api import *
+
+
+class bc_comprehensive_tax_credits(Variable):
+    value_type = float
+    entity = Person
+    label = "British Columbia comprehensive tax credits"
+    unit = CAD
+    definition_period = YEAR
+    reference = (
+        # C	is the smaller of the value of "B" and the amount that would be the individual's tax payable under
+        # this Act for the year if the only amounts deductible were the amounts under the following sections:
+        # (a)	section 4.3 [personal credits];
+        # (b)	section 4.31 [age credit];
+        # (c)	section 4.32 [pension credit];
+        # (c.1)	section 4.33 [adoption expense credit];
+        # (c.2)	and (c.21) [Repealed 2017-12-30.]
+        # (c.3)	[Repealed 2017-12-30.]
+        # (c.31)	[Repealed 2017-12-29.]
+        # (c.4)	section 4.36 [BC education coaching tax credit];
+        # (c.5)	section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers];
+        # (d)	section 4.51 [credit for mental or physical impairment];
+        # (e)	section 4.64 [credit for EI premium and CPP contribution],
+        "https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96215_00_multi#section4.62",  # § 4.62
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5010-c/5010-c-22e.pdf#page=1",  # Line 40
+    )
+    defined_for = ProvinceCode.BC

policyengine_canada/variables/gov/provinces/bc/tax/income/credits/tuition_amount/bc_tuition_credit.py

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+from policyengine_canada.model_api import *
+
+
+class bc_tuition_credit(Variable):
+    value_type = float
+    entity = Person
+    label = "British Columbia tuition credit"
+    definition_period = YEAR
+    defined_for: "bc_tuition_credit_eligibility"
+    reference = (
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5010-s11/5010-s11-22e.pdf#page=1",  # BC(S11) line 10
+        "https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96215_00_multi#section4.62",  # section 4.62
+    )
+
+    def formula(person, period, parameters):
+        age = person("age", period)
+        tuition = person("tuition_expenses", period)
+        taxable_income = person("bc_taxable_income", period)
+        comprehensive_tax_credits = person(
+            "bc_comprehensive_tax_credits", period
+        )
+        p = parameters(
+            period
+        ).gov.provinces.bc.tax.income.credits.tuition_amount
+        net_income = max_(taxable_income - comprehensive_tax_credits, 0)
+        tax_on_taxable_income = p.tax_bracket_rate.calc(taxable_income)
+        net_tax = max_(
+            (tax_on_taxable_income / p.lowest_tax_rate)
+            - comprehensive_tax_credits,
+            0,
+        )
+        return select(
+            [
+                taxable_income <= p.tax_bracket_rate.thresholds[1],
+                taxable_income > p.tax_bracket_rate.thresholds[1],
+            ],
+            [
+                min_(net_income, tuition),
+                min_(net_tax, tuition),
+            ],
+        )

policyengine_canada/variables/gov/provinces/bc/tax/income/credits/tuition_amount/bc_tuition_credit_eligibility.py

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+from policyengine_canada.model_api import *
+
+
+class bc_tuition_credit_eligibility(Variable):
+    value_type = bool
+    entity = Person
+    label = "Eligibility for the British Columbia tuition credit"
+    definition_period = YEAR
+    reference = (
+        "https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/eligible-tuition-fees.html",  # Tuition Amount
+        "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1nb/td1nb-23e.pdf#page=1",
+        "https://laws-lois.justice.gc.ca/PDF/I-3.3.pdf#page=1566",  # Line 4
+    )
+    defined_for = ProvinceCode.BC
+
+    def formula(person, period, parameters):
+        p = parameters(
+            period
+        ).gov.provinces.bc.tax.income.credits.tuition_amount
+        age = person("age", period)
+        tuition = person("tuition_expenses", period)
+        return (age >= p.eligible_age) & (tuition >= p.tuition_threshold)