How to complete Form 6765 for the R&D tax credit

The form in one pass

Form 6765 (Rev. December 2024)

Section	Lines	What it holds
Item A	Header	The Section 280C reduced-credit election. Yes or No, on the original timely filed return, and irrevocable for that year.
Item B	Header	Controlled group or common control. Members compute the credit as one taxpayer and allocate it.
Section A	1 to 13	Regular credit. Line 13 applies the 15.8 percent rate when the reduced credit is elected, otherwise 20 percent.
Section B	20 to 26	Alternative simplified credit. Line 26 applies 79 percent when the reduced credit is elected.
Section C	27 to 32	Current year credit. Line 29 adds credits from K-1s, line 30 is the total, lines 31 and 32 are for estates and trusts only.
Section D	33a to 36	Qualified small business payroll tax election. Line 36 carries to Form 8974.
Section E	37 to 41	Other information: business component count, officer wages, acquisitions or dispositions, new expense categories, and the ASC 730 directive.
Section F	42 to 48	Qualified research expense summary by category. Line 48 is the total.
Section G	Columns 49 to 56	Business component detail. Optional for tax years beginning before 2026, required after that for most filers.

Where line 30 goes

Form 6765, Section C

Partnerships and S corporations. Stop at line 30 and report the amount on Schedule K. The entity never files Form 3800 for this credit. See the Form 1065 and Form 1120-S guides.
Corporations and individuals. Report line 30 on Form 3800, Part III, line 1c. An eligible small business reports it on line 4i instead. The Form 3800 guide covers the limitation and the carry to the return.
Estates and trusts. Allocate line 30 between the entity and the beneficiaries on line 31 in the same proportion as income, and carry line 32 to Form 3800. See the Form 1041 guide.
Qualified small businesses electing the payroll credit. Filers other than partnerships and S corporations complete Form 3800 before Section D, because line 35 needs the carryforward figure.

The Section 280C election

Item A

Section 280C(c) requires the Section 174A deduction to be reduced by the amount of the credit, unless the taxpayer elects the reduced credit. Item A makes that election. It is available only on an original return filed by the due date including extensions, and it cannot be added or withdrawn on an amended return. For a pass-through entity the election is made on the entity return, since the entity computes the credit. The reduced rate is 15.8 percent on the regular method and 79 percent of the computed amount on the simplified method.

The payroll tax election

Section D, lines 33a to 36

Confirm eligibility. A qualified small business is a corporation, S corporation, or partnership with gross receipts under $5 million for the tax year and no gross receipts in any tax year before the five-tax-year period ending with the current year. The election may not be made for more than five tax years.
Check line 33a on an original return filed by the due date including extensions. The election is not available on an amended return.
Enter on line 34 the portion of line 28 elected as a payroll credit, up to $500,000.
Line 36 is the amount that carries to Form 8974, Part 1, column (e). Partnerships and S corporations report the rest of line 30 on Schedule K.
Claim it on payroll. Attach Form 8974 to Form 941 beginning with the first calendar quarter that starts after the income tax return is filed. The credit applies first to the employer share of Social Security tax, up to $250,000 per quarter, then to the employer share of Medicare tax, and any excess carries to the next quarter.

Sections E, F, and G

The disclosure sections

Sections E and F are required for every filer. Section G lists each business component with its qualified expenses, in descending order by expense, covering at least 80 percent of total expenses and no more than 50 components. It is optional for tax years beginning before 2026. After that it is required unless the filer makes the payroll election, or claims the credit on an original return with total qualified expenses of $1.5 million or less and average annual gross receipts of $50 million or less.

Common questions

Does a partner or shareholder who receives the credit on a K-1 file Form 6765?

Only if they also have research of their own. Line 29 of Form 6765 collects K-1 credits for a filer who is computing a credit. A recipient with no research of their own enters the K-1 amount on Form 3800, Part III, line 1c, with the entity EIN in column (c).

Can the Section 280C election be changed later?

No. The instructions make it irrevocable for the year, and it can only be made on an original timely filed return.

Which years can be claimed by amended return?

Up to three prior tax years can be claimed by amended return. The payroll election and the Section 280C election are not available on those years.

Does the study include the completed form?

Yes. Every study is delivered with Form 6765 completed, including the Section F summary and the Section G component detail, so the return preparer attaches it and carries line 30.

Sources

Related guides

Form 3800Where the research credit goes on Form 3800 and how it reaches the return.
Form 1120C corporations: Schedule J, Section 174A, and Form 1120-X.
Form 1120-SS corporations: Schedule K line 13g, K-1 box 13 code M, and the shareholder.
Form 1065Partnerships: Schedule K line 15f, K-1 box 15 code M, and the partner.
Form 1040Individuals: Schedule 3 line 6a, Schedule C, and Form 1040-X.
Form 1041Estates and trusts: Schedule G line 2b and K-1 box 13 code I.

The credit is computed once.