Instructions For Form 6765 - Credit For Increasing Research Activities

Form 6765 (2008)

Page

1. You are electing the alternative

100% of amounts you paid (or

for the 5th and 6th such tax years by

incremental credit,

incurred) for qualified energy research

the aggregate gross receipts for those

performed by: an eligible small

tax years, then divide the result by 3.

2. You are electing the alternative

business, a university, or a federal

simplified credit, or

For the 8th tax year beginning after

laboratory (see section 41(b)(3)(D) for

1993 for which you have qualified

3. You previously elected the

definitions of those entities). Also

research expenses, divide the

alternative incremental credit or the

include payments to those same

aggregate qualified research expenses

alternative simplified credit and are not

entities to the extent they are included

for the 5th, 6th, and 7th such tax

revoking the election on this return.

as basic research payments in line 2,

years by the aggregate gross receipts

Line 1

not to exceed the base period amount

for those tax years, then divide the

in line 3.

Enter the amounts you paid or

result by 2.

incurred to energy research consortia

75% of amounts you paid (or

For the 9th tax year beginning after

for energy research. Energy research

incurred) for qualified research by a

1993 for which you have qualified

does not include any research that is

qualified research consortium (as

research expenses, divide the

not qualified research. In general, an

defined by section 41(b)(3)(C)(ii)). Also

aggregate qualified research expenses

energy research consortium is any

include 75% of the payments to a

for the 5th, 6th, 7th, and 8th such tax

organization described in section

qualified research consortium to the

years by the aggregate gross receipts

501(c)(3), exempt from tax under

extent they are included as basic

for those tax years, then divide the

section 501(a), organized and

research payments in line 2, not to

result by 1.5.

operated primarily to conduct energy

exceed the base period amount in

For the 10th tax year beginning after

research, and not a private foundation.

line 3.

1993 for which you have qualified

See section 41(f)(6) for further details.

65% of amounts you paid (or

research expenses, divide the

Any amount included on line 1

incurred) for all other qualified

aggregate qualified research expenses

cannot be included elsewhere on the

research by any other person. Also

for the 5th through 9th such tax years

return.

include 65% of the payments to that

by the aggregate gross receipts for

person to the extent they are included

those tax years, then divide the result

Line 2

as basic research payments in line 2,

by 1.2.

not to exceed the base period amount

Enter the amounts the corporation (not

For the 11th and later tax years

in line 3.

to include S corporations, personal

beginning after 1993 for which you

holding companies, and service

Note. Prepaid contract research

have qualified research expenses,

organizations) paid in cash, under a

expenses are considered paid in the

divide the aggregate qualified research

written contract, for basic research to

year the research is actually done.

expenses for any 5 of the 5th through

a qualified university, scientific

10th such tax years by the aggregate

Line 10

research organization, or grant

gross receipts for those tax years.

organization. See section 41(e) for

The fixed-base percentage depends

The fixed-base percentage for an

details, including the definitions of

on whether you are an existing

existing company (any company that

qualified organizations.

company or a start-up company.

is not a start-up company) is figured

Line 3

A start-up company is a taxpayer

by dividing the aggregate qualified

that had both gross receipts and

research expenses for the tax years

Enter the qualified organization base

qualified research expenses either:

beginning after 1983 and before 1989

period amount based on minimum

For the first time in a tax year

by the aggregate gross receipts for

basic research amounts plus

those tax years.

beginning after 1983, or

maintenance-of-effort amounts for the

three preceding tax years. See section

For fewer than 3 tax years beginning

The fixed-base percentage for all

41(e) for details.

companies (existing and start-up) must

after 1983 and before 1989.

be rounded to the nearest 1/100th of

The fixed-base percentage for a

Line 7

1% (that is, four decimal places) and

start-up company is figured as follows.

cannot exceed 16%. In addition, when

Enter the amount you paid or incurred

For the first 5 tax years beginning

figuring your fixed-base percentage,

for the rental or lease of computers

after 1993 for which you have qualified

you must reflect expenses for qualified

used in qualified research. The

research expenses, the percentage is

research conducted in Puerto Rico or a

computer must be located off your

3%.

U.S. possession for all prior tax years

premises and you must not be the

included in the computation.

operator or primary user of the

For the 6th tax year beginning after

1993 for which you have qualified

computer. Reduce this amount by the

If short tax years are involved, see

amount that you (or any member of a

research expenses, divide the

Regulations section 1.41-3(b).

aggregate qualified research expenses

controlled group of corporations or

Reduce gross receipts by

businesses under common control)

for the 4th and 5th such tax years by

returns and allowances. For

the aggregate gross receipts for those

received or accrued for the right to

a foreign corporation,

use substantially identical property.

tax years, then divide the result by 6.

CAUTION

include only gross receipts

For the 7th tax year beginning after

Line 8

that are effectively connected with a

1993 for which you have qualified

trade or business in the United States

Enter the amounts you paid or

research expenses, divide the

(or in Puerto Rico or a U.S.

incurred, subject to the following

aggregate qualified research expenses

possession, if applicable).

limitations.

Instructions For Form 6765 - Credit For Increasing Research Activities - 2008 Page 2

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