Instructions For Form 6765 - Credit For Increasing Research Activities

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 6765

Credit for Increasing Research Activities

Section references are to the Internal Revenue Code unless

If you incur qualified clinical testing expenses relating to

otherwise noted.

drugs for certain rare diseases, you can elect to claim the

orphan drug credit for these expenses instead of the

Future Developments

research credit. See Form 8820, Orphan Drug Credit.

For the latest information about developments related to

See section 41 and Regulations sections 1.41-2 and

Form 6765 and its instructions, such as legislation enacted

1.41-4 for other definitions and special rules.

after they were published, go to

Special Rules

General Instructions

See section 41(f) and Regulations sections 1.41-6 (except

section 1.41-6(c) and parts of section 1.41-6(e) do not apply;

Purpose of Form

see Notice 2013-20, I.R.B. 2013-15, available at

, for details) and

Use Form 6765 to figure and claim the credit for increasing

1.41-7 for special rules related to:

research activities or to elect the reduced credit under

Aggregation of expenses for members of controlled

section 280C.

groups and businesses under common control;

Partnerships and S corporations must file this form to

Allocation of the credit by partnerships, estates, and trusts;

claim the credit. All others are generally not required to

Adjustments, if a major portion of a business is acquired or

complete or file this form if their only source for this credit is a

disposed of; and

partnership, S corporation, estate, or trust. Instead, they can

Short tax years.

report this credit directly on Form 3800, General Business

For special rules concerning the allocation and

Credit. The following exception applies: you are a taxpayer

apportionment of research and experimental expenses

that is an estate or trust and the credit can be allocated to

between U.S. and foreign source income, see sections 861

beneficiaries. For more details, see the instructions for Form

through 864.

1041, Schedule K-1, box 13.

Member of Controlled Group or

Note. Corporations filing an amended return to claim a credit

Business Under Common Control

or refund of the research credit, see Notice 2008-39, I.R.B.

2008-13 684, available at

For purposes of figuring the credit, all members of a

ar12.html for information on where to file.

controlled group of corporations (as defined in section 41(f)

Qualified Research

(1)(A) and (f)(5)) and all members of a group of businesses

under common control (as defined in section 41(f)(1)(B)), are

The research credit is generally allowed for expenses paid or

treated as a single taxpayer. Use Section A or B to figure the

incurred for qualified research. Qualified research means

credit for the entire group. As a member, your credit is

research for which expenses may be treated as section 174

determined on a proportionate basis to your share of the

expenses. This research must be undertaken for discovering

aggregate qualified research expenses for increasing

information that is technological in nature, and its application

research activities taken into account by the group for the

must be intended for use in developing a new or improved

research credit. Enter your share of the credit on line 17 or

business component of the taxpayer. In addition,

line 34, whichever applies. Attach a statement showing how

substantially all of the activities of the research must be

your share of the credit was figured, the name and employer

elements of a process of experimentation relating to a new or

identification number or taxpayer identification number of the

improved function, performance, reliability, or quality. All of

other members of the group, and the designated member.

the research activities must be applied separately with

Write “See Attached” next to the entry space for line 17 or

respect to each business component of the taxpayer. The

line 34.

research credit generally is not allowed for the following

If a member of a controlled group of corporations or

types of activities.

businesses under common control has filed its return using a

Research conducted after the beginning of commercial

method different from that of the designated member, then

production.

that member should file an amended return to conform to the

Research adapting an existing product or process to a

designated member's method.

particular customer’s need.

Duplication of an existing product or process.

A member of a controlled group cannot make an

Surveys or studies.

alternative simplified credit (ASC) election in a tax year on an

Research relating to certain internal-use computer

amended return if any member of the controlled group for

software.

that tax year previously claimed the research credit using a

Research conducted outside the United States, Puerto

method other than the ASC on an original or amended return

Rico, or a U.S. possession.

for that year. For additional rules regarding the election (or

Research in the social sciences, arts, or humanities.

revocation of the election) of the ASC in Section B by a

Research funded by another person (or governmental

controlled group of corporations, see Regulations sections

entity).

1.41-9 and 1.41-9T.

Jan 21, 2016

Cat. No. 13701S

Instructions For Form 6765 - Credit For Increasing Research Activities - 2015

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