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Add US government bond interest exemption to OR, PA, UT, WI state income taxes (+ tests for OK, RI, SC, VA, WV)#7670

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Add US government bond interest exemption to OR, PA, UT, WI state income taxes (+ tests for OK, RI, SC, VA, WV)#7670
MaxGhenis wants to merge 1 commit intoPolicyEngine:mainfrom
MaxGhenis:bond-interest-batch-4

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Summary

Adds US government bond interest exemption to state income tax calculations for four states that were missing this deduction: Oregon, Pennsylvania, Utah, and Wisconsin.

Additionally, adds YAML test cases for a total of nine states (the four above plus Oklahoma, Rhode Island, South Carolina, Virginia, and West Virginia) to ensure the exemption correctly flows through to state-level calculations.

States needing code changes

  • Oregon (OR)
  • Pennsylvania (PA)
  • Utah (UT)
  • Wisconsin (WI)

States with tests only

These states already had the exemption implemented but now have explicit test coverage:

  • Oklahoma (OK)
  • Rhode Island (RI)
  • South Carolina (SC)
  • Virginia (VA)
  • West Virginia (WV)

Closes

Closes #7649 (OK)
Closes #7650 (OR)
Closes #7651 (PA)
Closes #7652 (RI)
Closes #7653 (SC)
Closes #7654 (UT)
Closes #7655 (VA)
Closes #7656 (WI)
Closes #7657 (WV)

Test plan

  1. Run the new YAML test cases for all nine states to verify US government bond interest is properly recognized as a deductible item for state income tax purposes
  2. Verify the implementation follows the same pattern as previously implemented states (batch 1-3)
  3. Confirm the exemption amount flows through to the appropriate state AGI/taxable income subtraction variables

Add us_govt_interest to state AGI subtractions/modifications for Oregon,
Pennsylvania, Utah, and Wisconsin. Oklahoma, Rhode Island, South Carolina,
Virginia, and West Virginia already had this exemption implemented.

Add YAML test cases for all nine states confirming US government bond
interest flows through to the appropriate state subtraction variable.

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
@MaxGhenis MaxGhenis requested a review from DTrim99 March 3, 2026 13:19
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