Correct interest tax shield refund policy handling - #20
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j-bryan
approved these changes
Jul 31, 2026
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This change adds a
ProjectAnalysisargument for allowed tax refunds that is passed through to thetax_liabilitycall used to get a counterfactual interest-free baseline when calculating the interest tax shield. This prevents the baseline from incorrectly assuming a different refund handling policy than is used elsewhere in the analysis, which led to an incorrect interest tax shield value.A regression test that addresses the incorrect behavior using an independent hand calculation has been added.
Closes #16.