A quick Google/ChatGPT/GROK query indicated that high AGI does not phase out the Commercial Clean Air Vehicle Credit 45w.
Q: Would high AGI disqualify one from getting Commercial Clean Vehicle Tax Credit?
A: An individual’s high Adjusted Gross Income (AGI) does not disqualify a
business from receiving the Commercial Clean Vehicle Tax Credit. The
AGI income caps apply to the personal clean vehicle tax credits, not
the commercial credit.
I also spent an hour discussing this with a paid TurboTax CPA who agreed that high AGI would not disqualify sole proprietor from claiming Commercial Clean Air Vehicle Tax Credit. But she could not figure out how to make TurboTax to flow numbers all the way to Form 3800.
I then switched to TurboTax’s Form Mode to trace the numbers and noticed that TurboTax because of high AGI ticks Box 8D to “YES. Stop here,” preventing the Commercial Clean Air Tax Credit from being applied. See picture below.
FWIW, By artificially reducing AGI on 8936 I was able to get turbotax to put commercial clean air credit on Form 3800.
So:
- Do same AGI phaseouts apply to Commercial Clean Air Vehicle credit as to Personal New vehicle credit?
- If not is this a bug in turbotax or am I looking at wrong forms?