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Fillable Form 6765

Form 6765 is a “Credit for Increasing Research Activities” and informally known as the R&D Tax Credit Form.

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What is Form 6765?

Form 6765, Credit for Increasing Research Activities, is used by partnerships, S corporations, or eligible small businesses to figure out and claim the credit for increasing research activities or research credit, elect the reduced credit under section 280C, and elect to claim a certain amount of the credit as a payroll tax credit against the employer portion of social security taxes.

Research credit is normally allowed for expenses paid or incurred for qualified research. This research must be undertaken for discovering information that is technological in nature. Furthermore, its application must be intended for use in developing a new or improved business component.

How to fill out Form 6765?

Applicants can download and print a PDF copy of Form 6765 from the Internal Revenue Service (IRS) website that they can manually complete. They can also fill out Form 6765 electronically on PDFRun.

To fill out Form 6765, you must provide the following information:

Name shown on return

Enter your full legal name which is also shown on your tax return.

Identifying Number

Enter your identifying number.

Section A. Regular Credit

Skip this section and go directly to Section B if you are electing or previously elected and are not revoking the alternative simplified credit.

Line 1

Enter the certain amounts you have paid or incurred to energy consortia.

Line 2

Enter all of the basic research payments you have made to qualified organizations based

on minimum basic research amounts plus maintenance-of-effort amounts for the 3 preceding tax years.

Line 3

Enter the base period amount of the qualified organization.

Line 4

Subtract the amount in line 3 by the amount in line 2 and enter the total amount. If the amount is zero or less, enter “-0-”.

Line 5

Enter the wages for qualified services. This does not include wages used in figuring the work opportunity credit.

Line 6

Enter the total cost of supplies.

Line 7

Enter the total costs of the rental or lease of computers.

Line 8

Enter the applicable percentage of the contract research expenses.

Line 9

Enter the total amount of qualified research expenses by adding the amounts in line 5 through line 8.

Line 10

Enter the fixed-base percentage. The fixed-base percentage must not be more than 16% or 0.16.

Line 11

Enter the average annual gross receipts.

Line 12

Multiply the amount in line 11 by the percentage in line 10 and enter the total amount.

Line 13

Subtract the amount in line 12 by the amount in line 9 and enter the total amount. If the amount is zero or less, enter “-0-”.

Line 14

Multiply the amount in line 9 by 50% or 0.50.

Line 15

Enter the smaller amount between the amounts in line 13 and line 14.

Line 16

Add the amounts in lines 1, 4, and 15. Then, enter the total amount.

Line 17

Mark YES if you are electing the reduced credit under section 280C; otherwise, mark NO.

If you have marked YES, multiply the amount in line 16 by 15.8% or 0158 and enter the total amount. If you have marked NO, multiply the amount in line 16 by 20% or 0.20 and enter the total amount.

Section B. Alternative Simplified Credit

You do not have to complete this section if you have already completed Section A.

Line 18

Enter the certain amounts you have paid or incurred to energy consortia.

Line 19

Enter all of the basic research payments you have made to qualified organizations based on minimum basic research amounts plus maintenance-of-effort amounts for the 3 preceding tax years.

Line 20

Enter the base period amount of the qualified organization.

Line 21

Subtract the amount in line 20 from the amount in line 19 and enter the total amount. If the amount is zero or less, enter “-0-”.

Line 22

Add the amounts in line 18 and line 21 and enter the total amount.

Line 23

Multiply the amount in line 22 by 20% or 0.20 and enter the total amount.

Line 24

Enter the wages for qualified services. This must not include wages that have been used in figuring the work opportunity credit.

Line 25

Enter the total cost of supplies.

Line 26

Enter the total costs of the rental or lease of computers.

Line 27

Enter the applicable percentage of contract research expenses.

Line 28

Enter the total amount of qualified research expenses.

Line 29

Enter the total amount of qualified research expenses for the prior 3 tax years. If you did not have any qualified research expenses in any one of those years, skip lines 30 and 31.

Line 30

Divide the amount in line 29 by 6.0 and enter the total amount.

Line 31

Subtract the amount in line 30 from the amount in line 28 and enter the total amount. If the amount is zero or less, enter “-0-”.

Line 32

Multiply the amount in line 31 by 14% or 0.14 and enter the total amount. If you have skipped lines 30 and 31, multiply the amount in line 28 by 6% or 0.06 and enter the total amount.

Line 33

Add the amount in line 23 to the amount in line 32 and enter the total amount.

Line 34

Mark YES if you are electing the reduced credit under section 280C; otherwise, mark NO.

If you have marked YES, multiply the amount in line 33 by 79% or 079 and enter the total amount. If you have marked NO, enter the amount in line 33.

Section C. Current Year Credit

Line 35

Enter the position of the credit from Form 8932, Credit for Employer Differential Wage Payments, line 2, that is attributable to the wages that were also used to figure the credit in line 17 or line 34.

Line 36

Subtract the amount in line 35 from the amount in line 17 or line 34 and enter the total amount. If the amount is zero or less, enter “-0-”.

Line 37

Enter the credit for increasing research activities from partnerships, S corporations, estates, and trusts.

Line 38

Add the amounts in lines 36 and 37. Then, enter the total amount.

You can continue filling out this form depending on what type of corporation you have. The types of corporations are the following:

  • Estates and trusts - You can proceed to line 39.
  • Partnerships and S corporations not electing the payroll tax credit - You may stop filling out this form and report the total amount.
  • Partnerships and S corporations electing the payroll tax credit - Complete Section D and report the amount on this line reduced by the amount in line 44.
  • Eligible small businesses - You may stop filling out this form and report the credit on Form 3800, General Business Credit, Part III, line 4i.
  • Filers other than eligible small businesses - You may stop filling out this form and report the credit on Form 3800, General Business Credit, Part III, line 1c.

Line 39

Enter the amount allocated to beneficiaries of the estate or trust.

Line 40

  • Estates and trusts - Subtract the amount in line 39 from the one in line 38 and enter the amount.
  • Eligible small businesses - Report the credit on Form 3800, General Business Credit.
  • Filers other than eligible small businesses - Report the credit on Form 3800, General Business Credit, Part III, line 1c.

Section D. Qualified Small Business Payroll Tax Election and Payroll Tax Credit

You are not required to complete this section if the payroll tax election does not apply.

Line 41

Mark the box if you are a qualified small business electing the payroll tax credit; otherwise, leave it blank.

Line 42

Enter the portion of line 36 elected as a payroll tax credit.

Line 43

Enter any general business credit carryforward from the current year. If you are in a partnership or S corporation, skip this line and proceed to line 44.

Line 44

  • Partnerships and S corporations - Enter the smaller amount between line 36 and line 42.
  • Others - Enter the smallest of line 36, line 42, or line 43.
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