applicable phaseout threshold range
(4) Reduction of increased credit amount based on modified adjusted gross income (A) In general The amount of the credit allowable under subsection (a) (determined without regard to subsection (b)) shall be reduced by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income (as defined in subsection (b)) exceeds the applicable threshold amount. (B) Applicable threshold amount For purposes of this paragraph, the term “applicable threshold amount” means— (i) $150,000, in the case of a joint return or surviving spouse (as defined in section 2(a)) , (ii) $112,500, in the case of a head of household (as defined in section 2(b)), and (iii) $75,000, in any other case. (C) Limitation on reduction (i) In general The amount of the reduction under subparagraph (A) shall not exceed the lesser of— (I) the applicable credit increase amount, or (II) 5 percent of the applicable phaseout threshold range. (ii) Applicable credit increase amount For purposes of this subparagraph, the term “applicable credit increase amount” means the excess (if any) of— (I) the amount of the credit allowable under this section for the taxable year determined without regard to this paragraph and subsection (b), over (II) the amount of such credit as so determined and without regard to paragraph (3). (iii) Applicable phaseout threshold range For purposes of this subparagraph, the term “applicable phaseout threshold range” means the excess of— (I) the threshold amount applicable to the taxpayer under subsection (b) (determined after the application of subsection (h)(3)), over (II) the applicable threshold amount applicable to the taxpayer under this paragraph. (D) Coordination with limitation on overall credit Subsection (b) shall be applied by substituting “the credit allowable under subsection (a) (determined after the application of subsection (i)(4)(A)” for “the credit allowable under subsection (a)”.