If a partnership or an S corporation places a new clean vehicle in service and the new clean vehicle credit is claimed by individuals who are direct or indirect partners of that partnership or shareholders of that S corporation, the modified adjusted gross income (AGI) thresholds apply to those partners or shareholders.
The relevant modified AGI thresholds are as follows:
The modified AGI is the amount from line 11 of Form 1040 plus:
If the filing status changes between the preceding year and the current year, the partner or shareholder may claim the new clean vehicle credit if their modified AGI is less than or equal to the threshold applicable to their filing status for the preceding year or current year.
Sources:
§ 179. Election to expense certain depreciable business assets
§ 168. Accelerated cost recovery system
FS-2023-22
FS-2023-8
FS-2023-29
FS-2024-14