Instructions For Form 6765 - Credit For Increasing Research Activities

Who Must File Form 3800

Section B—Alternative Incremental Credit

Complete this section only if you are electing or

Complete Form 3800 instead of Part III of Form 6765 to

previously elected the alternative incremental credit

figure the tax liability limit if for this year you have:

•

instead of the regular credit (and have not requested and

More than one of the credits included in the general

received permission to revoke the election).

business credit (see list below),

•

A carryback or carryforward of any of the credits,

Line 18

•

A research credit from a passive activity, or

Enter the qualified organization base period amount as

•

General credits from an electing large partnership

defined in section 41(e). The amount on line 18 (not to

(Schedule K-1 (Form 1065-B)).

exceed the amount on line 17), although not eligible for

the basic research credit, can be treated as contract

The general business credit consists of the following

research expenses on line 24 subject to the 65% (or

credits.

75%) limitation.

•

Investment (Form 3468).

Section C—Current Year Credit

•

Work opportunity (Form 5884).

•

Welfare-to-work (Form 8861).

Line 40

•

Alcohol used as fuel (Form 6478).

Enter the amount of credit that was allocated to you as a

•

Research (Form 6765).

shareholder, partner, or beneficiary.

•

Low-income housing (Form 8586).

Line 41

•

Enhanced oil recovery (Form 8830).

•

Pass-through entities should report the amount on line 41

Disabled access (Form 8826).

as follows.

•

Renewable electricity production (Form 8835).

•

Estates and trusts. Allocate the research credit on line

Indian employment (Form 8845).

41 between the estate or trust and the beneficiaries in the

•

Employer social security and Medicare taxes paid on

same proportion as income was allocated. In the margin

certain employee tips (Form 8846).

for line 41, the estate or trust should enter its share of the

•

Orphan drug (Form 8820).

credit. Label it “1041 Portion” and use this amount in

•

New markets (Form 8874).

Parts II and III (or on Form 3800, if required) to figure the

•

Contributions to selected community development

credit to take on Form 1041. On Schedule K-1, show the

corporations (Form 8847).

credit allocated to each beneficiary.

•

Trans-Alaska pipeline liability fund.

S corporations and partnerships. Attach Form 6765 to

The empowerment zone employment credit (Form

Form 1120S or 1065, and on Schedule K-1 show the

8844), while a component of the general business credit,

credit allocated to each shareholder or partner. Electing

is figured separately on Form 8844 and is never carried

large partnerships should include this credit in “general

to Form 3800.

credits.”

Part II—Suspended and Allowable

Part III—Tax Liability Limit

Current Year Credits

Line 50

Any research credit attributable to the second

Although you may not owe alternative minimum tax

suspension period (October 1, 2000, through

(AMT), you generally must still compute the tentative

September 30, 2001) may not be claimed on your original

minimum tax (TMT) to figure your credit. For a small

income tax return. See the instructions for line 43 to

corporation exempt from the AMT under section 55(e),

figure the suspended credit. See the instructions for line

enter zero. Otherwise, enter the TMT that was figured on

56 for when and how to claim it.

the appropriate AMT form or schedule.

Line 43

Line 52

Multiply the amount on line 42 by the applicable

See section 38(c)(3) for special rules that apply to

suspension percentage. The applicable suspension

married couples filing separate returns, controlled

percentage is the number of months in your tax year

corporate groups, regulated investment companies, real

included in the second suspension period divided by the

estate investment trusts, and estates and trusts.

total number of months in your tax year. However, if you

have a research credit on line 40 from a pass-through

Line 55

entity that has a tax year different from your tax year, you

must instead multiply that portion of the credit by the

For an individual, estate, or trust, the credit(s) on line 16,

number of months in the entity’s tax year included in the

39, or 40 is limited to the amount of tax attributable to

second suspension period divided by the total number of

your taxable income from the sole proprietorship or your

months in the entity’s tax year.

interest in the partnership, S corporation, estate, or trust

Exception. If your first required installment of estimated

(pass-through entity) generating the credit. Figure the

tax is due after September 30, 2001, enter -0- on line 43.

research credit limitation separately for each business

You do not have a suspended research credit.

enterprise by using the following formula:

-3-

Instructions For Form 6765 - Credit For Increasing Research Activities - 2001 Page 3

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