Instructions For Form 6765 - Credit For Increasing Research Activities

2014

Department of the Treasury

Internal Revenue Service

Instructions for Form 6765

Credit for Increasing Research Activities

Section references are to the Internal Revenue Code

quality. All of the research activities must be applied

unless otherwise noted.

separately with respect to each business component of

the taxpayer. The research credit generally is not allowed

Future Developments

for the following types of activities.

For the latest information about developments related to

Research conducted after the beginning of commercial

Form 6765 and its instructions, such as legislation

production.

enacted after they were published, go to

Research adapting an existing product or process to a

form6765.

particular customer’s need.

Duplication of an existing product or process.

What's New

Surveys or studies.

The credit for increasing research activities has been

Research relating to certain internal-use computer

extended for amounts paid or incurred through December

software.

31, 2014.

Research conducted outside the United States, Puerto

Rico, or a U.S. possession.

General Instructions

Research in the social sciences, arts, or humanities.

Research funded by another person (or governmental

Purpose of Form

entity).

Use Form 6765 to figure and claim the credit for

If you incur qualified clinical testing expenses relating to

increasing research activities or to elect the reduced

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

credit under section 280C.

orphan drug credit for these expenses instead of the

Who Must File

research credit. See Form 8820, Orphan Drug Credit.

See section 41 and Regulations sections 1.41-2 and

An individual, estate, trust, organization, or corporation

1.41-4 for other definitions and special rules.

claiming a credit for increasing research activities; or any

S corporation, partnership, estate, or trust that allocates

Special Rules

the credit to its shareholders, partners, or beneficiaries

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

must complete this form and attach it to its income tax

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

return.

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

, for details)

Partnerships and S corporations must file this form to

claim the credit. All others are generally not required to

and 1.41-7 for special rules related to:

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

Aggregation of expenses for members of controlled

is a partnership, S corporation, estate, or trust. Instead,

groups and businesses under common control;

they can report this credit directly on Form 3800, General

Allocation of the credit by partnerships, estates, and

Business Credit. The following exception applies: you are

trusts;

a taxpayer that is an estate or trust and the credit can be

Adjustments, if a major portion of a business is

allocated to beneficiaries. For more details, see the

acquired or disposed of; and

Instructions for Form 1041, Schedule K-1, box 13.

Short tax years.

For special rules concerning the allocation and

Note. Corporations filing an amended return to claim a

apportionment of research and experimental expenses

credit or refund of the research credit, see Notice

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

2008-39, I.R.B. 2008-13 684, available at http://

861 through 864.

irb/2008-13_IRB/ar12.html for information on

where to file.

Member of Controlled Group or

Qualified Research

Business Under Common Control

The research credit is generally allowed for expenses paid

For purposes of figuring the credit, all members of a

or incurred for qualified research. Qualified research

controlled group of corporations (as defined in section

means research for which expenses may be treated as

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

section 174 expenses. This research must be undertaken

businesses under common control (as defined in section

for discovering information that is technological in nature,

41(f)(1)(B)), are treated as a single taxpayer. Use

and its application must be intended for use in developing

Section A or B to figure the credit for the entire group. As a

a new or improved business component of the taxpayer.

member, your credit is determined on a proportionate

In addition, substantially all of the activities of the research

basis to your share of the aggregate qualified research

must be elements of a process of experimentation relating

expenses for increasing research activities taken into

to a new or improved function, performance, reliability, or

account by the group for the research credit. Enter your

Feb 18, 2015

Cat. No. 13701S

Instructions For Form 6765 - Credit For Increasing Research Activities - 2014

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