Instructions for IRS Form 6765 Credit for Increasing Research Activities

IRS Form 6765 Credit for Increasing Research Activities

This document contains official instructions for IRS Form 6765 , Credit for Increasing Research Activities - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 6765 is available for download through this link.

FAQ

Q: What is IRS Form 6765?
A: IRS Form 6765 is a tax form used to claim the Credit for Increasing Research Activities.

Q: Who can use IRS Form 6765?
A: Businesses that have engaged in qualified research activities in the U.S. may use IRS Form 6765.

Q: What is the purpose of the Credit for Increasing Research Activities?
A: The purpose of this credit is to incentivize businesses to invest in research and development activities in the United States.

Q: What are qualified research activities?
A: Qualified research activities are activities undertaken to develop or improve a process, product, technique, formula, or invention.

Q: What expenses can be included in calculating the credit?
A: Expenses such as wages, supplies, and contract research expenses incurred in the conduct of qualified research activities can be included in calculating the credit.

Q: How is the credit calculated?
A: The credit is generally 20% of the excess qualified research expenses for the current year over a base amount.

Q: Are there any limitations on the credit?
A: Yes, there are limitations based on a business's gross receipts, the amount of qualified research expenses, and the taxpayer's alternative minimum tax liability.

Q: How do I claim the credit?
A: To claim the credit, you need to complete and attach IRS Form 6765 to your business tax return.

Q: Are there any deadlines for claiming the credit?
A: Yes, the credit must be claimed on your business tax return for the year in which the qualified research expenses were incurred.