Estate Tax Credit Exemption 2026 (#5399)

* Estate Tax Credit Exemption 2026 Fixes #5171 * changelog * calculation * Estate Tax Credit Exemption 2026 Fixes #5171 * minor --------- Co-authored-by: PavelMakarchuk <[email protected]>
PolicyEngine · Dec 24, 2024 · dac320f · dac320f
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diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - 2026 Estate Tax Credit Exemption amount.
diff --git a/policyengine_us/parameters/gov/irs/credits/estate/base.yaml b/policyengine_us/parameters/gov/irs/credits/estate/base.yaml
@@ -54,4 +54,8 @@ values:
   2022-01-01: 12_060_000  
   2023-01-01: 12_920_000  
   2024-01-01: 13_610_000
-  2025-01-01: 13_990_000  
+  2025-01-01: 13_990_000
+  # Based on the legal code, we use 2017 value as the base 
+  # and cpi_w (2026Q1 projection) for uprating
+  # 5,000,000 * 321.701 (2026Q1) / 236.854 (2017-01-01)
+  2026-01-01: 6_790_000