This document is an IRS form for claiming the credit for increasing research activities. It provides instructions for claiming the regular research credit in Section A, the alternative incremental credit in Section B, or the alternative simplified credit in Section C. The summary includes calculating qualified research expenses, the fixed-base percentage, and determining the allowable credit amount. Members of controlled groups must combine their research expenses and credits. The form requires reporting the calculated credit amount and includes provisions for electing or revoking alternative credits.

1. OMB No. 1545-0619
6765 Credit for Increasing Research Activities
2008
Form
Attach to your tax return.
Department of the Treasury Attachment
81
Internal Revenue Service Sequence No.
Name(s) shown on return Identifying number
Section A—Regular Credit. Skip this section and go to Section B or C if you are electing or previously elected (and are not revoking)
the alternative incremental credit or the alternative simplified credit, respectively.
1
1 Certain amounts paid or incurred to energy consortia (see instructions)
2
2 Basic research payments to qualified organizations (see instructions)
3
3 Qualified organization base period amount
4
4 Subtract line 3 from line 2. If zero or less, enter -0-
Wages for qualified services (do not include wages used in figuring
5
5
the work opportunity credit)
6
6 Cost of supplies
7
7 Rental or lease costs of computers (see instructions)
8 Enter the applicable percentage of contract research expenses (see
8
instructions)
9
9 Total qualified research expenses. Add lines 5 through 8
%
10
Enter fixed-base percentage, but not more than 16% (see instructions)
10
11
11 Enter average annual gross receipts (see instructions)
12
12 Multiply line 11 by the percentage on line 10
13
13 Subtract line 12 from line 9. If zero or less, enter -0-
14
Multiply line 9 by 50% (.50)
14
15
15 Enter the smaller of line 13 or line 14
16
16 Add lines 1, 4, and 15
Are you electing the reduced credit under section 280C? Yes No
17
If “Yes,” multiply line 16 by 13% (.13). If “No,” multiply line 16 by 20% (.20) and see the instructions
for the schedule that must be attached. Members of controlled groups or businesses under
common control: see instructions for the schedule that must be attached 17
Section B—Alternative Incremental Credit. Skip this section if you are completing Section A or C.
18
Certain amounts paid or incurred to energy consortia (see the line 1 instructions)
18
Basic research payments to qualified organizations (see the line 2
19
19
instructions)
20
Qualified organization base period amount (see the line 3 instructions)
20
21
Subtract line 20 from line 19. If zero or less, enter -0-
21
22
Add lines 18 and 21
22
23
Multiply line 22 by 20% (.20)
23
Wages for qualified services (do not include wages used in figuring
24
24
the work opportunity credit)
25
25 Cost of supplies
26
Rental or lease costs of computers (see the line 7 instructions)
26
Enter the applicable percentage of contract research expenses (see
27
27
the line 8 instructions)
28
Total qualified research expenses. Add lines 24 through 27
28
29
Enter average annual gross receipts (see the line 11 instructions)
29
30
Multiply line 29 by 1% (.01)
30
31
Subtract line 30 from line 28. If zero or less, enter -0-
31
32
Multiply line 29 by 1.5% (.015)
32
33
Subtract line 32 from line 28. If zero or less, enter -0-
33
34
Subtract line 33 from line 31
34
35
Multiply line 29 by 2% (.02)
35
36
Subtract line 35 from line 28. If zero or less, enter -0-
36
37 Subtract line 36 from line 33 37
6765
For Paperwork Reduction Act Notice, see instructions. Cat. No. 13700H Form (2008)

2. 2
Form 6765 (2008) Page
Section B—Alternative Incremental Credit (continued)
38
38 Multiply line 34 by 3% (.03)
39
39 Multiply line 37 by 4% (.04)
40
40 Multiply line 36 by 5% (.05)
41
41 Add lines 23, 38, 39, and 40
42 Are you electing the reduced credit under section 280C? Yes No
If “Yes,” multiply line 41 by 65% (.65). If “No,” enter the amount from line 41 and see the line 17
instructions for the schedule that must be attached. Members of controlled groups or businesses
under common control: see instructions for the schedule that must be attached 42
Section C—Alternative Simplified Credit. Skip this section if you are completing Section A or B.
43
43 Certain amounts paid or incurred to energy consortia (see the line 1 instructions)
44 Basic research payments to qualified organizations (see the line 2
44
instructions)
45
45 Qualified organization base period amount (see the line 3 instructions)
46
46 Subtract line 45 from line 44. If zero or less, enter -0-
47
47 Add lines 43 and 46
48
48 Multiply line 47 by 20% (.20)
49 Wages for qualified services (do not include wages used in figuring the
49
work opportunity credit)
50
50 Cost of supplies
51
51 Rental or lease costs of computers (see the line 7 instructions)
52 Enter the applicable percentage of contract research expenses (see
52
the line 8 instructions)
53
53 Total qualified research expenses. Add lines 49 through 52
54 Enter your total qualified research expenses for the prior 3 tax years. If
you had no qualified research expenses in any one of those years, skip
54
lines 55 and 56
55
55 Divide line 54 by 6.0
56
56 Subtract line 55 from line 53. If zero or less, enter -0-
● Line 56 by 12% (.12) for tax years ending before 2009,
57 Multiply:
57
● Line 56 by 14% (.14) for tax years ending after 2008, or
● Line 53 by 6% (.06) if you skipped lines 55 and 56.
58
58 Add lines 48 and 57
59 Are you electing the reduced credit under section 280C? Yes No
If “Yes,” multiply line 58 by 65% (.65). If “No,” enter the amount from line 58 and see the line 17
instructions for the schedule that must be attached. Members of controlled groups or businesses
under common control: see instructions for the schedule that must be attached 59
Section D—Summary
60 Enter the portion of the credit from Form 8932, line 2, that is attributable to wages that were also
60
used to figure the credit on line 17, line 42, or line 59 (whichever applies)
61
61 Subtract line 60 from line 17, line 42, or line 59 (whichever applies). If zero or less, enter -0-
62
62 Credit for increasing research activities from partnerships, S corporations, estates, and trusts
63 Add lines 61 and 62. Estates and trusts go to line 64; partnerships and S corporations, report
63
this amount on Schedule K; all others, report this amount on line 1c of Form 3800
64 Amount allocated to beneficiaries of the estate or trust (see instructions) 64
65 Estates and trusts: subtract line 64 from line 63. Report the credit on line 1c of Form 3800 65
6765
Form (2008)

3. 3
Form 6765 (2008) Page
In addition, substantially all of the Member of
General Instructions
activities of the research must be Controlled Group or
Section references are to the Internal elements of a process of
Business Under
Revenue Code unless otherwise experimentation relating to a new or
Common Control
noted. improved function, performance,
reliability, or quality. The research For purposes of figuring the credit, all
What’s New credit generally is not allowed for the members of a controlled group of
● The general credit rate for the following types of activities. corporations (as defined in section
alternative simplified credit increased ● Research conducted after the 41(f)(1)(A) and (f)(5)) and all members
from 12 percent to 14 percent. of a group of businesses under
beginning of commercial production.
● The alternative incremental credit in common control (as defined in section
● Research adapting an existing
41(f)(1)(B)), are treated as a single
Section B will terminate for tax years product or process to a particular
taxpayer. As a member, compute your
beginning after December 31, 2008. customer’s need.
credit based on your proportionate
● The current year credit must be ● Duplication of an existing product or share of qualified research expenses
reduced by the amount (if any) of the process. and basic research payments giving
credit for employer differential wage rise to the group’s research credit for
● Surveys or studies.
payments. Section A, B, or C. Enter your share of
● Research relating to certain the credit on line 17, 42, or 59,
Purpose of Form internal-use computer software. whichever applies. Attach a statement
● Research conducted outside the
Use Form 6765 to figure and claim the showing how your share of the credit
credit for increasing research was figured, and write “See Attached”
United States, Puerto Rico, or a U.S.
activities. next to the entry space for line 17, 42,
possession.
or 59.
● Research in the social sciences,
Who Must File
For special rules regarding the
arts, or humanities.
An individual, estate, trust, election (or revocation of the election)
● Research funded by another person
organization, or corporation claiming a of the alternative incremental credit in
(or governmental entity).
credit for increasing research activities; Section B by a controlled group of
or any S corporation, partnership, If you incur qualified clinical testing corporations, see Regulations section
estate, or trust that allocates the credit expenses relating to drugs for certain 1.41-8.
to its shareholders, partners, or rare diseases, you can elect to claim
Specific Instructions
beneficiaries must complete this form the orphan drug credit for these
and attach it to its income tax return. If expenses instead of the research
you are a taxpayer that is not a You can:
credit. See Form 8820, Orphan Drug
partnership or S corporation, and your Credit. ● Claim the regular credit in
only source of this credit is from a See section 41 and Regulations Section A,
partnership, S corporation, estate, or sections 1.41-2 and 1.41-4 for other ● Elect the alternative incremental
trust, you are not required to complete definitions and special rules. credit in Section B, or
or file this form, with the following
● Elect the alternative simplified credit
Special Rules
exception: you are a taxpayer that is an
estate or trust and the credit can be in Section C.
See section 41(f) and Regulations
allocated to beneficiaries. For more You may want to figure your credit
sections 1.41-6, 1.41-6T, and 1.41-7
details, see the Instructions for Form using all of the methods for which you
for special rules related to:
1041, Schedule K-1, box 13. are eligible to get the maximum credit
● Aggregation of expenditures for
allowed.
Note: Corporations filing an amended members of controlled groups and
return to claim a refund of the Once elected, the alternative
businesses under common control;
research credit, see Notice 2008-39, incremental credit or the alternative
● Allocation of the credit by
I.R.B. 2008-13 684, available at simplified credit applies to the current
partnerships, estates, and trusts;
http://www.irs.gov/irb/2008-13_IRB/ tax year and all later tax years, unless
● Adjustments, if a major portion of a
index.html for information on where to you revoke the election. The
file. business is acquired or disposed of; revocation for the alternative
and incremental credit must be made on
Qualified Research an original return filed by the due date
● Short tax years.
The research credit is generally allowed (including extensions). See Regulations
For special rules concerning the
for expenditures paid or incurred for section 1.41-8T. The revocation of the
allocation and apportionment of
qualified research. Qualified research alternative incremental credit may not
research and experimental
means research for which expenditures be made on an amended return. To
expenditures between U.S. and
may be treated as section 174 revoke a previous election of the
foreign source income, see sections
expenses. This research must be alternative incremental credit,
861 through 864.
undertaken for discovering information complete Section A or C.
that is technological in nature, and its
Section A—Regular Credit
application must be intended for use in
developing a new or improved Skip this section and go to Section B
business component of the taxpayer. or C if:

4. 4
Form 6765 (2008) Page
● 100% of amounts you paid (or
1. You are electing the alternative 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 ● For the 8th tax year beginning after
simplified credit, or
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.
● 75% of amounts you paid (or
incurred to energy research consortia ● 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
A start-up company is a taxpayer
Line 3 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
● For fewer than 3 tax years beginning
three preceding tax years. See section 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
● For the 6th tax year beginning after included in the computation.
operator or primary user of the
1993 for which you have qualified
computer. Reduce this amount by the If short tax years are involved, see
research expenses, divide the
amount that you (or any member of a Regulations section 1.41-3(b).
aggregate qualified research expenses
controlled group of corporations or
Reduce gross receipts by
for the 4th and 5th such tax years by
businesses under common control)
returns and allowances. For
the aggregate gross receipts for those
received or accrued for the right to
a foreign corporation,
tax years, then divide the result by 6.
use substantially identical property. 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.

5. 5
Form 6765 (2008) Page
Line 11 2. You previously elected the proportion as income was allocated
alternative incremental credit and are and enter the beneficiaries’ share on
Enter the average annual gross
not revoking the election on this line 64.
receipts (reduced by returns and
return.
allowances) for the 4 tax years
Paperwork Reduction Act Notice.
preceding the tax year for which the Section C—Alternative Simplified We ask for the information on this
credit is being determined. You may Credit form to carry out the Internal Revenue
be required to annualize gross receipts
Complete this section only if, instead laws of the United States. You are
for any short tax year. For a foreign
of the regular credit or the alternative required to give us the information.
corporation, include only gross
incremental credit: We need it to ensure that you are
receipts that are effectively connected
complying with these laws and to
1. You are electing the alternative
with a trade or business in the United
allow us to figure and collect the right
simplified credit, or
States (or in Puerto Rico or a U.S.
amount of tax.
possession, if applicable). 2. You previously elected the
You are not required to provide the
alternative simplified credit and are not
For a tax year that the credit information requested on a form that
revoking the election on this return.
terminates, the average annual gross is subject to the Paperwork Reduction
receipts for the four tax years Act unless the form displays a valid
Line 54
preceding the termination tax year is OMB control number. Books or
Enter your qualified research expenses
prorated for the number of days the records relating to a form or its
for the prior three tax years. If the
credit applied during the tax year. For instructions must be retained as long
credit terminates during the tax year,
more information, see section 41(h). as their contents may become material
prorate the qualified research in the administration of any Internal
Line 17 expenses for the prior three tax years Revenue law. Generally, tax returns
for the number of days the credit
If you do not elect the reduced credit, and return information are confidential,
applied during the tax year. For more
which can only be claimed on an as required by section 6103.
information, see section 41(h).
original timely filed return (with
The time needed to complete and
extensions), you must reduce your
file this form will vary depending on
Section D—Summary
otherwise allowable deduction for
individual circumstances. The
qualified research expenses or basic Line 60 estimated burden for individual
research expenses by the amount of
taxpayers filing this form is approved
If the credit on line 17, 42, or 59
the credit on this line. If the credit
under OMB control number 1545-0074
includes amounts paid to employees
exceeds the amount allowed as a
and is included in the estimates
as wages, and you are also claiming a
deduction for the tax year, reduce the
shown in the instructions for their
credit for employer differential wage
amount chargeable to capital account
individual income tax return.
payments based on payments you
for the year for such expenses by the
made to the same employees, enter The estimated burden for all other
amount of the excess. Attach a
on line 60 the portion of the credit taxpayers who file this form is shown
schedule to your tax return that lists
from Form 8932, line 2, that is below. The estimated average time is:
the deduction amounts (or capitalized
attributable to wages that were also
expenses) that were reduced. Identify Recordkeeping 16 hr., 15 min.
used to figure the credit on line 17,
the lines of your return (schedule or
Learning about the law
line 42, or line 59 (whichever applies).
forms for capitalized items) on which
or the form 2 hr., 22 min.
the reductions were made. See Form 8932, Credit for Employer
Preparing and sending the form
Differential Wage Payments, for more
Section B—Alternative to the IRS 2 hr., 45 min.
information on the credit.
Incremental Credit If you have comments concerning
Line 64
the accuracy of these time estimates
Complete this section only if, instead
Estates and trusts. Allocate the credit or suggestions for making this form
of the regular credit or the alternative
for increasing research activities on simpler, we would be happy to hear
simplified credit:
line 63 between the estate or trust and from you. See the instructions for the
1. You are electing the alternative the beneficiaries in the same tax return with which this form is filed.
incremental credit, or