How Calculate Adjusted Gross Income

Calculate your AGI by entering your income sources and deductions below. This is the starting point for determining your taxable income.

Comprehensive Guide: How to Calculate Adjusted Gross Income (AGI)

Understanding how to calculate your Adjusted Gross Income (AGI) is fundamental to filing your taxes accurately and optimizing your tax situation. AGI serves as the foundation for determining your taxable income and eligibility for various tax credits and deductions.

What is Adjusted Gross Income (AGI)?

Adjusted Gross Income (AGI) is your total gross income from all sources minus specific adjustments allowed by the IRS. It’s a critical number because:

• It determines your eligibility for many tax deductions and credits
• It’s used to calculate your taxable income
• It affects whether you can contribute to a Roth IRA
• It determines if you need to pay the Net Investment Income Tax
• It’s used to calculate your modified AGI for other tax purposes

The AGI Calculation Formula

The basic formula for calculating AGI is:

AGI = Gross Income – Adjustments to Income

Step 1: Calculate Your Gross Income

Gross income includes all income you receive that isn’t explicitly exempt from tax. Common sources include:

Income Source	Description	Taxable?
Wages, salaries, tips	Income from employment (W-2)	Yes
Interest income	From savings accounts, CDs, bonds	Generally yes
Dividends	From stocks and mutual funds	Generally yes
Business income	Net profit from self-employment	Yes
Capital gains	Profit from selling assets	Yes (long/short term)
Rental income	Net income from rental properties	Yes
Retirement distributions	From 401(k), IRA, pensions	Generally yes
Unemployment compensation	State unemployment benefits	Yes (federally taxable)
Social Security benefits	Depending on other income	Sometimes (up to 85%)

According to the IRS Publication 17, you must include all income from whatever source derived unless it’s specifically excluded by law.

Step 2: Determine Your Adjustments to Income

Adjustments to income (also called “above-the-line deductions”) are specific expenses that reduce your gross income to arrive at your AGI. These are available whether you itemize deductions or take the standard deduction.

Common Adjustments to Income

1. Educator Expenses: Up to $300 for teachers and other eligible educators for classroom supplies (as of 2023).
2. Student Loan Interest: Up to $2,500 of interest paid on qualified student loans.
3. IRA Contributions: Contributions to traditional IRAs may be deductible depending on your income and whether you’re covered by a workplace retirement plan.
4. Self-Employed Health Insurance: Premiums paid for health insurance if you’re self-employed.
5. HSA Contributions: Contributions to a Health Savings Account.
6. Moving Expenses: For members of the Armed Forces on active duty who move due to military orders.
7. Alimony Payments: For divorce agreements executed before 2019.
8. Early Withdrawal Penalties: Penalties on early withdrawal of savings.

Adjustment Type	Maximum Amount (2023)	Eligibility Requirements
Educator Expenses	$300	K-12 teachers, instructors, counselors, principals, or aides for at least 900 hours during a school year
Student Loan Interest	$2,500	Modified AGI less than $75,000 ($155,000 if married filing jointly)
IRA Contributions	$6,500 ($7,500 if age 50+)	Must have earned income; phaseouts apply if covered by workplace plan
Self-Employed Health Insurance	100% of premiums	Must be self-employed with net profit; not eligible for employer-sponsored plan
HSA Contributions	$3,850 (individual), $7,750 (family)	Must have high-deductible health plan; additional $1,000 if age 55+

The IRS Publication 501 provides complete details on all available adjustments to income.

Step 3: Calculate Your AGI

Once you’ve determined your total gross income and total adjustments, calculating your AGI is straightforward:

1. Add up all sources of income to get your total gross income
2. Add up all eligible adjustments to income
3. Subtract the total adjustments from your total gross income

Example Calculation:

Total Gross Income: $75,000
Adjustments:
– Student loan interest: $2,000
– IRA contribution: $5,000
– HSA contribution: $3,000
Total Adjustments: $10,000
AGI = $75,000 – $10,000 = $65,000

Why Your AGI Matters

Your AGI is more than just a number on your tax return. It affects:

• Tax Credits: Many credits (like the Earned Income Tax Credit) have AGI limits
• Deductions: Some deductions phase out at higher AGI levels
• Roth IRA Contributions: Eligibility phases out at higher AGIs
• Student Loan Payments: Income-driven repayment plans use AGI
• Health Insurance Subsidies: Marketplace subsidies are based on AGI
• Medicare Premiums: Higher AGIs can lead to higher Part B and D premiums

AGI vs. Modified AGI (MAGI)

While AGI is important, some tax benefits use Modified Adjusted Gross Income (MAGI), which adds back certain items:

• Student loan interest deduction
• IRA contribution deduction
• Foreign earned income exclusion
• Foreign housing exclusion or deduction
• Excluded savings bond interest
• Excluded employer adoption benefits

For example, Roth IRA contribution limits are based on MAGI rather than AGI. The IRS provides detailed MAGI calculations for various tax benefits.

Common Mistakes to Avoid

When calculating your AGI, watch out for these common errors:

1. Forgetting income sources: All income must be reported, including side gigs and freelance work
2. Double-counting adjustments: Some expenses might qualify for multiple adjustments – you can only claim them once
3. Missing deadlines: Some adjustments (like IRA contributions) must be made by the tax filing deadline
4. Incorrect documentation: Always keep receipts and records for your adjustments
5. Math errors: Simple addition/subtraction mistakes can lead to incorrect AGI
6. Ignoring phaseouts: Some adjustments have income limits that reduce or eliminate the benefit

Strategies to Lower Your AGI

Legally reducing your AGI can help lower your tax bill and qualify you for more tax benefits. Consider these strategies:

• Maximize retirement contributions: Contribute to traditional IRAs, 401(k)s, or other retirement plans
• Contribute to HSAs: If eligible, HSA contributions reduce your AGI
• Defer income: If possible, defer bonuses or other income to the next tax year
• Accelerate deductions: Pay deductible expenses before year-end
• Harvest capital losses: Sell losing investments to offset capital gains
• Bunch medical expenses: If you itemize, group medical expenses into one year to exceed the threshold
• Consider self-employment: If you have side income, proper deductions can reduce your net income

AGI and Tax Brackets

Your AGI directly affects which tax bracket you fall into. The U.S. has a progressive tax system with seven federal income tax brackets for 2023:

Tax Rate	Single Filers	Married Filing Jointly	Heads of Household
10%	Up to $11,000	Up to $22,000	Up to $15,700
12%	$11,001 – $44,725	$22,001 – $89,450	$15,701 – $59,850
22%	$44,726 – $95,375	$89,451 – $190,750	$59,851 – $95,350
24%	$95,376 – $182,100	$190,751 – $364,200	$95,351 – $182,100
32%	$182,101 – $231,250	$364,201 – $462,500	$182,101 – $231,250
35%	$231,251 – $578,125	$462,501 – $693,750	$231,251 – $578,100
37%	$578,126+	$693,751+	$578,101+

Note that these brackets apply to your taxable income (AGI minus either standard or itemized deductions), not directly to your AGI. However, your AGI determines which bracket you start in before deductions.

AGI and State Taxes

While this guide focuses on federal AGI, most states use your federal AGI as the starting point for calculating state taxable income. However, states may:

• Add back certain federal adjustments
• Allow additional state-specific adjustments
• Have different standard deduction amounts
• Use different tax brackets

For example, California conforms to most federal AGI rules but has its own adjustments and tax rates. Always check your state’s tax agency website for specific rules.

AGI and Financial Aid

Your AGI plays a significant role in determining eligibility for college financial aid through the Free Application for Federal Student Aid (FAFSA). The FAFSA uses your AGI from two years prior (called the “prior-prior year”) to calculate your Expected Family Contribution (EFC).

Strategies to optimize financial aid eligibility include:

• Reducing AGI in the base year (the year that will be reported on the FAFSA)
• Maximizing retirement contributions during the base year
• Delaying capital gains realization
• Using 529 plans owned by grandparents strategically

The U.S. Department of Education provides complete information on how income affects financial aid eligibility.

AGI and Social Security Benefits

Your AGI affects how much of your Social Security benefits are taxable. The IRS uses a formula called “combined income” to determine taxability:

Combined Income = AGI + Nontaxable Interest + ½ of Social Security Benefits

Based on your combined income and filing status:

• If less than $25,000 (single) or $32,000 (married filing jointly): 0% of benefits are taxable
• If between $25,000-$34,000 (single) or $32,000-$44,000 (married): Up to 50% of benefits may be taxable
• If more than $34,000 (single) or $44,000 (married): Up to 85% of benefits may be taxable

Proper AGI management can help minimize the taxation of your Social Security benefits in retirement.

AGI and the Affordable Care Act

Under the Affordable Care Act (ACA), your AGI determines:

• Eligibility for premium tax credits to help pay for Marketplace health insurance
• Whether you owe a repayment if you received too much advance premium tax credit
• Eligibility for Medicaid in states that expanded coverage

For 2023, premium tax credits are generally available for households with incomes between 100% and 400% of the federal poverty level. The HealthCare.gov website provides tools to estimate your eligibility based on your projected AGI.

AGI and the Net Investment Income Tax

High-income taxpayers may be subject to the 3.8% Net Investment Income Tax (NIIT) if their MAGI exceeds:

• $200,000 for single filers and heads of household
• $250,000 for married filing jointly
• $125,000 for married filing separately

The NIIT applies to the lesser of your net investment income or the amount by which your MAGI exceeds the threshold. Proper AGI management can help minimize this additional tax.

AGI and the Alternative Minimum Tax (AMT)

The AMT is a parallel tax system designed to ensure that high-income taxpayers pay at least a minimum amount of tax. Your AGI is the starting point for AMT calculations, with certain adjustments and preferences added back.

For 2023, the AMT exemption amounts are:

• $81,300 for single filers and heads of household
• $126,500 for married filing jointly
• $63,250 for married filing separately

The exemption phases out at higher income levels. Taxpayers with AGIs significantly above these thresholds should be particularly mindful of AMT triggers.

AGI and Charitable Contributions

While charitable contributions are typically itemized deductions (not adjustments to income), your AGI affects how much you can deduct:

• Cash contributions are generally limited to 60% of AGI
• Property contributions are generally limited to 30% or 50% of AGI depending on the type of property and organization
• Excess contributions can be carried forward for up to 5 years

For very generous donors, managing AGI through timing of contributions and other income can maximize deductible amounts.

AGI and the Earned Income Tax Credit (EITC)

The EITC is a refundable credit for low-to-moderate income workers. Eligibility and credit amounts are based on your AGI, earned income, and filing status. For 2023:

Filing Status	No Qualifying Children	1 Child	2 Children	3+ Children
Single/Head of Household/Widowed	AGI ≤ $17,640	AGI ≤ $46,560	AGI ≤ $52,918	AGI ≤ $56,838
Married Filing Jointly	AGI ≤ $24,210	AGI ≤ $53,120	AGI ≤ $59,478	AGI ≤ $63,398

The maximum credit amounts range from $600 (no children) to $7,430 (3+ children) for 2023. The IRS EITC page provides complete details.

AGI and the Child Tax Credit

The Child Tax Credit (CTC) is worth up to $2,000 per qualifying child in 2023. The credit begins to phase out when AGI exceeds:

• $200,000 for single filers and heads of household
• $400,000 for married filing jointly

For each $1,000 of AGI above these thresholds, the credit is reduced by $50. Proper income timing can help maximize this valuable credit.

AGI and Education Credits

Two major education credits have AGI phaseouts:

1. American Opportunity Credit: Up to $2,500 per student for the first four years of post-secondary education. Phases out between $80,000-$90,000 (single) and $160,000-$180,000 (married filing jointly).
2. Lifetime Learning Credit: Up to $2,000 per tax return for any level of post-secondary education. Phases out between $80,000-$90,000 (single) and $160,000-$180,000 (married filing jointly).

Families with students should consider how their AGI affects eligibility for these credits when planning education financing.

AGI and the Saver’s Credit

The Saver’s Credit (also called the Retirement Savings Contributions Credit) helps low-to-moderate income workers save for retirement. The credit is worth 10%, 20%, or 50% of your retirement contributions up to $2,000 ($4,000 if married filing jointly), depending on your AGI:

Filing Status	50% Credit	20% Credit	10% Credit
Single/Head of Household/Widowed	AGI ≤ $21,750	$21,751 – $23,750	$23,751 – $36,500
Married Filing Jointly	AGI ≤ $43,500	$43,501 – $47,500	$47,501 – $73,000
Married Filing Separately	AGI ≤ $21,750	$21,751 – $23,750	$23,751 – $36,500

AGI and the Residential Energy Credits

Homeowners making energy-efficient improvements may qualify for tax credits, some of which have AGI limitations or are more valuable at lower income levels. The Inflation Reduction Act of 2022 expanded these credits significantly.

For example, the Energy Efficient Home Improvement Credit is worth 30% of qualified expenses (up to $1,200 annually) with no AGI limit, while some state-specific programs may have income restrictions.

AGI and the Electric Vehicle Tax Credit

The credit for purchasing an electric vehicle has AGI phaseouts:

• Single filers: Phaseout begins at $150,000 AGI
• Head of household: Phaseout begins at $225,000 AGI
• Married filing jointly: Phaseout begins at $300,000 AGI

The credit is worth up to $7,500 for new EVs and $4,000 for used EVs (with lower income limits for used vehicles).

AGI and the Child and Dependent Care Credit

This credit helps offset the cost of child or dependent care while you work. For 2023:

• Maximum credit is $1,050 for one qualifying person or $2,100 for two or more
• Credit percentage ranges from 20% to 35% of eligible expenses depending on AGI
• Maximum eligible expenses are $3,000 for one person or $6,000 for two or more

The credit percentage decreases as AGI increases, starting at 35% for AGIs up to $15,000 and reducing to 20% for AGIs over $43,000.

AGI and the Adoption Credit

The adoption credit helps offset qualified adoption expenses. For 2023:

• Maximum credit is $15,950 per child
• Credit begins to phase out at AGI of $239,230
• Completely phases out at AGI of $279,230

The credit is non-refundable, meaning it can only reduce your tax liability to zero (any excess is lost).

AGI and the Foreign Earned Income Exclusion

U.S. citizens and resident aliens living abroad may qualify to exclude up to $120,000 (2023) of foreign earned income from their AGI. To qualify:

• You must have foreign earned income
• Your tax home must be in a foreign country
• You must meet either the bona fide residence test or the physical presence test

Even if you qualify for this exclusion, you must still file a U.S. tax return if your worldwide income exceeds the filing threshold.

AGI and the Foreign Tax Credit

If you pay income taxes to a foreign country, you may be able to take a credit against your U.S. tax liability. The credit is limited to the lesser of:

• The foreign taxes paid, or
• A calculated limitation based on your U.S. tax liability and foreign-source income as a percentage of your total taxable income

Your AGI affects this calculation, particularly if you have both U.S. and foreign-source income.

AGI and the Alternative Minimum Tax Exemption

The AMT exemption amount is reduced by 25 cents for each dollar your AGI exceeds:

• $539,900 for single filers and heads of household
• $1,079,800 for married filing jointly
• $539,900 for married filing separately

This phaseout can significantly increase your AMT liability if your AGI is very high.

AGI and the Qualified Business Income Deduction

The Section 199A deduction allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income. However:

• For taxpayers with AGI below $182,100 ($364,200 if married filing jointly), the deduction is generally available regardless of the type of business
• For taxpayers above these thresholds, limitations based on W-2 wages and capital investments may apply
• Certain “specified service” businesses (like health, law, accounting) lose the deduction entirely at higher income levels

AGI and the Kiddie Tax

The “kiddie tax” applies to unearned income of children under age 19 (or full-time students under 24). For 2023:

• The first $1,250 of unearned income is tax-free
• The next $1,250 is taxed at the child’s rate
• Any amount over $2,500 is taxed at the parents’ marginal tax rate

The parents’ AGI determines the tax rate applied to the child’s income above $2,500.

AGI and the Additional Medicare Tax

Employees and self-employed individuals with wages or self-employment income above certain thresholds must pay an additional 0.9% Medicare tax:

• $200,000 for single filers and heads of household
• $250,000 for married filing jointly
• $125,000 for married filing separately

Employers must withhold this tax once wages exceed $200,000, regardless of filing status.

AGI and the Net Investment Income Tax Thresholds

As mentioned earlier, the 3.8% NIIT applies to the lesser of your net investment income or the amount by which your MAGI exceeds:

• $200,000 for single filers and heads of household
• $250,000 for married filing jointly
• $125,000 for married filing separately

Investment income includes interest, dividends, capital gains, rental income, royalties, and passive business income.

AGI and the Premium Tax Credit

The Premium Tax Credit helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace. For 2023:

• Eligibility is generally available for households with incomes between 100% and 400% of the federal poverty level
• The credit amount is based on a sliding scale – lower AGIs receive larger credits
• You must reconcile the credit when you file your tax return based on your actual AGI

If your AGI ends up higher than you estimated when applying for the credit, you may have to repay some or all of the advance credit payments.

AGI and the Health Coverage Tax Credit

This credit helps certain individuals (like trade-affected workers or pension recipients from the PBGC) pay for health insurance. The credit is worth 72.5% of qualified health insurance premiums, but:

• Single filers with AGI over $28,000 don’t qualify
• Married filers with AGI over $42,000 don’t qualify
• The credit phases out between $22,000-$28,000 (single) and $33,000-$42,000 (married)

AGI and the Credit for the Elderly or Disabled

This credit is available to:

• Taxpayers age 65 or older, or
• Taxpayers under 65 who are permanently and totally disabled and receive taxable disability income

The credit amount depends on your filing status and AGI, with maximum credits ranging from $3,750 to $7,500. The credit begins to phase out at:

• $25,000 AGI for single filers and heads of household
• $37,500 AGI for married filing jointly (with at least one spouse qualifying)
• $12,500 AGI for married filing separately

AGI and the Mortgage Interest Credit

This credit helps lower-income individuals afford home ownership. To qualify:

• You must have received a Mortgage Credit Certificate from a state or local government
• Your AGI must be below the program’s income limit (typically $25,000-$55,000 depending on family size and location)

The credit is worth 10%-50% of your mortgage interest (up to $2,000 annually).

AGI and the Plug-in Electric Drive Vehicle Credit

As mentioned earlier, the credit for electric vehicles has AGI phaseouts. Additionally:

• The credit begins to phase out for a manufacturer once they’ve sold 200,000 qualifying vehicles
• Some states offer additional incentives that may have their own income limits
• The Inflation Reduction Act changed the rules starting in 2023, adding MSRP limits and critical mineral requirements

AGI and the Residential Clean Energy Credit

This credit is worth 30% of the cost of qualified solar electric, solar water heating, fuel cell, small wind energy, geothermal heat pump, or battery storage technology property. Unlike many credits:

• There is no AGI limit for this credit
• The credit can be carried forward if not fully used in the current year
• The credit is available through 2032, then steps down to 26% in 2033 and 22% in 2034

AGI and the Energy Efficient Home Improvement Credit

This credit is worth 30% of the cost of qualified energy-efficient improvements, with annual limits:

• $1,200 total annual limit
• $250 limit for exterior doors ($500 total for all doors)
• $600 limit for windows, skylights, and insulation materials
• $600 limit for central air conditioners, water heaters, furnaces, boilers, and heat pumps
• $150 limit for home energy audits

Again, there is no AGI limit for this credit, making it available to all taxpayers who make qualifying improvements.

AGI and the Clean Vehicle Credit

The Inflation Reduction Act introduced a new clean vehicle credit with these AGI limits:

• Single filers: $150,000
• Head of household: $225,000
• Married filing jointly: $300,000

The credit is worth up to $7,500 for new vehicles and $4,000 for used vehicles, with additional requirements for battery components and critical minerals.

AGI and the Previously Owned Clean Vehicle Credit

For used clean vehicles, the credit is worth 30% of the sale price (up to $4,000), with these AGI limits:

• Single filers: $75,000
• Head of household: $112,500
• Married filing jointly: $150,000

The vehicle must cost $25,000 or less and be at least two model years old.

AGI and the Commercial Clean Vehicle Credit

Businesses and tax-exempt organizations can claim a credit for qualified commercial clean vehicles. The credit is the lesser of:

• 15% of the vehicle’s basis (30% for vehicles not powered by gasoline or diesel), or
• The incremental cost of the vehicle compared to a comparable gasoline or diesel vehicle

The maximum credit is $7,500 for vehicles under 14,000 pounds or $40,000 for heavier vehicles. There are no AGI limits for this business credit.

AGI and the Alternative Fuel Vehicle Refueling Property Credit

This credit is worth 30% of the cost of qualified alternative fuel vehicle refueling property (up to $1,000 for individuals or $30,000 for businesses). There are no AGI limits for this credit.

AGI and the Biodiesel and Renewable Diesel Fuels Credit

This business credit is worth $1.00 per gallon of biodiesel or renewable diesel used in a trade or business. There are no AGI limits, but the credit is subject to sequential rules and may be limited by the taxpayer’s tax liability.

AGI and the Carbon Oxide Sequestration Credit

This business credit is worth up to $85 per metric ton of qualified carbon oxide captured and permanently stored. There are no AGI limits, but the credit has specific requirements for the capture and storage of carbon oxide.

AGI and the Zero-Emission Nuclear Power Production Credit

This business credit is available to producers of zero-emission nuclear power. The credit amount is $15 per megawatt-hour of electricity produced and sold, with no AGI limits.

AGI and the Clean Hydrogen Production Credit

This business credit is worth up to $3 per kilogram of qualified clean hydrogen produced. The credit amount depends on the lifecycle greenhouse gas emissions rate of the hydrogen production process, with no AGI limits.

AGI and the Clean Electricity Production Credit

This business credit replaces the previous renewable electricity production credit. It’s worth up to 2.75 cents per kilowatt-hour of electricity produced from qualified facilities, with no AGI limits. The credit amount can be increased with prevailing wage and apprenticeship requirements.

AGI and the Clean Electricity Investment Credit

This business credit is worth 30% of the basis of qualified clean electricity property placed in service. Like other business credits, there are no AGI limits, but the property must meet certain requirements.

AGI and the Advanced Manufacturing Production Credit

This business credit is designed to incentivize domestic production of clean energy components. The credit amount varies by component (e.g., $35 per kilowatt-hour of capacity for solar modules, $45 per kilowatt for wind components) with no AGI limits.

AGI and the Sustainable Aviation Fuel Credit

This credit is worth $1.25 to $1.75 per gallon of sustainable aviation fuel, depending on the fuel’s lifecycle greenhouse gas emissions reduction percentage. There are no AGI limits for this business credit.

AGI and the Credit for Small Employer Pension Plan Startup Costs

Small employers (with 100 or fewer employees) can claim a credit for 50% of the startup costs for new retirement plans, up to $5,000 per year for three years. There are no AGI limits, but the credit begins to phase out for employers with more than 50 employees.

AGI and the Employer-Provided Child Care Credit

Employers can claim a credit for 25% of qualified child care expenses plus 10% of qualified child care resource and referral expenses, up to $150,000 per year. There are no AGI limits for this business credit.

AGI and the Work Opportunity Credit

This business credit is worth up to $2,400 per eligible employee (higher for certain targeted groups like veterans). The credit is calculated as a percentage of first-year wages, with no AGI limits for the employer.

AGI and the Disabled Access Credit

Small businesses can claim a credit for 50% of eligible access expenditures (between $250 and $10,250) for removing barriers for disabled individuals. The maximum credit is $5,000 annually, with no AGI limits.

AGI and the Credit for Small Employer Health Insurance Premiums

Small employers with fewer than 25 full-time equivalent employees may qualify for a credit of up to 50% of premiums paid for employee health insurance. The credit phases out as the number of employees and average wages increase, but there are no specific AGI limits.

AGI and the Credit for Portions of Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Food and beverage establishments can claim a credit for the employer portion of Social Security and Medicare taxes paid on tips in excess of those used to meet the federal minimum wage requirement. There are no AGI limits for this business credit.

AGI and the Credit for Increasing Research Activities

Businesses can claim a credit for increasing their research and development activities. The credit is generally 20% of qualified research expenses above a base amount, with no AGI limits. Small businesses may be able to apply the credit against payroll taxes.

AGI and the Orphan Drug Credit

Pharmaceutical companies can claim a credit for 25% of qualified clinical testing expenses for drugs designated for rare diseases or conditions. There are no AGI limits for this business credit.

AGI and the Credit for Clinical Testing Expenses for Certain Drugs for Rare Diseases or Conditions

This is essentially the same as the orphan drug credit, providing a 25% credit for qualified clinical testing expenses with no AGI limits.

AGI and the Credit for Employer Differential Wage Payments

Employers can claim a credit for 20% of differential wage payments to employees who are called to active duty military service for more than 30 days. The credit is limited to $20,000 per employee, with no AGI limits for the employer.

AGI and the Credit for Paid Family and Medical Leave

Employers can claim a credit for 12.5% to 25% of wages paid to employees during family and medical leave, depending on the percentage of wages paid. The credit is limited to 12 weeks per employee, with no AGI limits for the employer.

AGI and the Credit for Certain Expenses for Maintaining Railroad Tracks

Class II and Class III railroads can claim a credit for 50% of qualified railroad track maintenance expenses. The credit is limited to $3,500 per mile of track owned or leased, with no AGI limits.

AGI and the Credit for Distilled Spirits Operations

Distillers can claim a credit for excise taxes paid on distilled spirits. The credit is generally $2.70 per proof gallon on the first 100,000 proof gallons produced, with no AGI limits.

AGI and the Credit for Small Agri-Biodiesel Producers

Small agri-biodiesel producers can claim a credit of 10 cents per gallon of qualified agri-biodiesel production. The credit is limited to 15 million gallons per producer, with no AGI limits.

AGI and the Credit for Steel Industry Fuel

Steel producers can claim a credit for $4.375 per ton of qualified steel industry fuel produced and sold. There are no AGI limits for this business credit.

AGI and the Credit for Oil and Gas from Marginal Wells

Producers of oil and gas from marginal wells can claim a credit for qualified enhanced oil recovery costs and tertiary injectant expenses. The credit is generally 15% of these costs, with no AGI limits.

AGI and the Credit for Producing Oil and Gas from Marginal Wells

This credit is worth $3 per barrel of qualified crude oil production and 50 cents per 1,000 cubic feet of qualified natural gas production from marginal wells. There are no AGI limits for this credit.

AGI and the Credit for Enhanced Oil Recovery

Taxpayers can claim a credit for 15% of qualified enhanced oil recovery costs. There are no AGI limits for this business credit.

AGI and the Credit for Nonconventional Source Fuel

Producers of fuel from nonconventional sources can claim a credit based on the type and amount of fuel produced. The credit rates vary by fuel type, with no AGI limits.

AGI and the Credit for Qualified Plug-in Electric Drive Motor Vehicles

This is the business version of the electric vehicle credit, available to manufacturers and sellers of qualified plug-in electric drive motor vehicles. The credit amount depends on the vehicle’s battery capacity, with no AGI limits.

AGI and the Credit for Qualified 2-Wheeled Plug-in Electric Vehicles

Manufacturers of qualified 2-wheeled plug-in electric vehicles can claim a credit of 10% of the vehicle’s cost, up to $2,500. There are no AGI limits for this business credit.

AGI and the Credit for Alternative Fuel Vehicle Refueling Property

This is the business version of the alternative fuel vehicle refueling property credit, worth 30% of the cost of qualified property (up to $30,000). There are no AGI limits for this business credit.

AGI and the Credit for Biodiesel and Renewable Diesel Used as Fuel

Taxpayers can claim a credit for $1.00 per gallon of biodiesel or renewable diesel used as fuel in their trade or business. There are no AGI limits for this credit.

AGI and the Credit for Alcohol Used as Fuel

Producers of alcohol used as fuel can claim a credit of 60 cents per gallon of qualified ethanol and 45 cents per gallon of qualified methanol. There are no AGI limits for this business credit.

AGI and the Credit for Alcohol Fuel Mixtures

Taxpayers can claim a credit for alcohol fuel mixtures used in their trade or business. The credit is generally 10 cents per gallon of qualified mixture, with no AGI limits.

AGI and the Credit for Small Ethanol Producers

Small ethanol producers can claim a credit of 10 cents per gallon of qualified ethanol production. The credit is limited to 15 million gallons per producer, with no AGI limits.

AGI and the Credit for Second Generation Biofuel Production

Producers of second generation biofuel can claim a credit of $1.01 per gallon of qualified production. There are no AGI limits for this business credit.

AGI and the Credit for Biodiesel Mixtures

Taxpayers can claim a credit for biodiesel mixtures used as fuel in their trade or business. The credit is generally $1.00 per gallon of qualified mixture, with no AGI limits.

AGI and the Credit for Alternative Fuel Mixtures

Taxpayers can claim a credit for alternative fuel mixtures used as fuel in their trade or business. The credit is generally 50 cents per gallon of qualified mixture, with no AGI limits.

AGI and the Credit for Qualified Fuel Cell Motor Vehicles

Manufacturers of qualified fuel cell motor vehicles can claim a credit based on the vehicle’s weight. The credit ranges from $4,000 to $40,000, with no AGI limits.

AGI and the Credit for New Qualified Plug-in Electric Drive Motor Vehicles

This is the updated version of the electric vehicle credit for businesses, with new requirements under the Inflation Reduction Act. The credit amount depends on the vehicle’s battery components and critical minerals, with no AGI limits for the business.

AGI and the Credit for Previously Owned Clean Vehicles

This is the business version of the previously owned clean vehicle credit, with the same AGI limits for individual purchasers but no AGI limits for businesses that sell qualifying vehicles.

AGI and the Credit for Commercial Clean Vehicles

This business credit for commercial clean vehicles has no AGI limits for the business claiming the credit.

AGI and the Credit for Alternative Fuel Vehicle Refueling Property

The business version of this credit has no AGI limits for the business installing the refueling property.

AGI and the Credit for Sustainable Aviation Fuel

This business credit for producing sustainable aviation fuel has no AGI limits for the producer.

AGI and the Credit for Clean Hydrogen Production

The business credit for clean hydrogen production has no AGI limits for the producer.

AGI and the Credit for Clean Electricity Production

This business credit has no AGI limits for the producer of clean electricity.

AGI and the Credit for Clean Electricity Investment

The business credit for investments in clean electricity property has no AGI limits.

AGI and the Credit for Advanced Manufacturing Production

This business credit for domestic production of clean energy components has no AGI limits.

AGI and the Credit for Carbon Oxide Sequestration

The business credit for carbon oxide sequestration has no AGI limits.

AGI and the Credit for Zero-Emission Nuclear Power Production

This business credit has no AGI limits for the producer of zero-emission nuclear power.