Apply the phase-in to the CTC when computing the New York empire stat…

…e credit (#5367)

Fixes #5366

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Apply the phase-in to the CTC when computing the New York empire state credit.

policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/credits/ny_ctc.yaml

@@ -23,7 +23,7 @@
   output:
     ny_ctc: 0
 
-- name: Parent of four-year old child with no income gets minimum credit, 33% of $1,000
+- name: Parent of four-year old child with no income gets minimum credit, $100 per child
   period: 2022
   input:
     people:
@@ -40,9 +40,9 @@
         members: [parent, child]
         state_code: NY
   output:
-    ny_ctc: 330
+    ny_ctc: 100
 
-- name: Parent of four-year old child with no income gets minimum credit, 33% of $1,000
+- name: Parent of four-year old child with no income gets minimum credit, $100 per child
   period: 2022
   input:
     people:
@@ -59,7 +59,7 @@
         members: [parent, child]
         state_code: NY
   output:
-    ny_ctc: 330
+    ny_ctc: 100
 
 - name: Simpler calculation if not set to pre-TCJA.
   period: 2022
@@ -72,7 +72,7 @@
   output:
     ny_ctc: 330
 
-- name: 2023 Three-year old child gets credit
+- name: 2023 Three-year old child gets minimum credit
   period: 2023
   input:
     people:
@@ -88,9 +88,9 @@
         members: [parent, child]
         state_code: NY
   output:
-    ny_ctc: 330
+    ny_ctc: 100
 
-- name: 2023 Newly born child (zero-year old) gets credit
+- name: 2023 Newly born child (zero-year old) gets minimum credit
   period: 2023
   input:
     people:
@@ -106,4 +106,51 @@
         members: [parent, child]
         state_code: NY
   output:
-    ny_ctc: 330
+    ny_ctc: 100
+
+- name: Single parent of one child without income - should receive credit floor
+  period: 2025
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income: 0
+      child:
+        age: 0
+    tax_units:
+      tax_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: NY
+  output:
+    refundable_ctc: 0
+    non_refundable_ctc: 2_000
+    income_tax_before_credits: 0
+    ctc: 2_000 # $1,000 for the calculation as pre-TCJA values apply
+    ctc_value: 0
+    ny_ctc: 100
+
+- name: Single parent of one child with income - should receive percentage credit
+  period: 2025
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income: 30_000
+      child:
+        age: 0
+    tax_units:
+      tax_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: NY
+  output:
+    refundable_ctc: 1_250
+    non_refundable_ctc: 750
+    ctc: 2_000
+    ctc_value: 2_000
+    ny_ctc: 330 # 33% of $1,000 as pre-TCJA CTC values apply 

policyengine_us/variables/gov/states/ny/tax/income/credits/ctc/ny_ctc.py

@@ -52,7 +52,9 @@ def formula(tax_unit, period, parameters):
                 period,
                 maximum_ctc * meets_ny_minimum_age,
             )
-            federal_ctc = pre_tcja_ctc.tax_unit("ctc", period)
+            max_federal_ctc = pre_tcja_ctc.tax_unit("ctc", period)
+            ctc_phase_in = pre_tcja_ctc.tax_unit("ctc_phase_in", period)
+            federal_ctc = min_(max_federal_ctc, ctc_phase_in)
             qualifies_for_federal_ctc = pre_tcja_ctc.person(
                 "ctc_qualifying_child", period
             )