Every dollar of federal R&D credit flows through Form 6765. It rides along with your income tax return, and everything the IRS wants to know about your claim — how you computed it, what you spent, and increasingly what you actually researched — lives in its seven sections:
| Section | What it covers |
|---|---|
| A | The regular credit computation |
| B | The alternative simplified credit (ASC) computation |
| C | The current-year credit and where it flows on your return |
| D | The payroll tax election for qualified small businesses |
| E | Other information: business-component count, officer wages, and more |
| F | A summary of your qualified research expenses (QREs) |
| G | Business component detail — the section that changes everything in 2026 |
You complete Section A or Section B, never both. The regular method compares this year's spending against a base amount rooted in your history; the ASC only looks at your last three years. The right choice depends on your numbers, and a good preparer runs both.
| Regular credit (Section A) | ASC (Section B) | |
|---|---|---|
| Rate | 20% of QREs over a base amount | 14% of QREs over half your prior-3-year average |
| With the 280C election | 15.8% | 11.06% |
| No prior-year QREs | Base-amount rules still apply | 6% of current-year QREs |
| Best for | Companies whose research outgrew an old base period | Most claimants — simpler and predictable |
The credit and your deduction for the same research spending interact. Electing the reduced credit under Section 280C — the 15.8% and 11.06% rates above — keeps your deductions whole in exchange for a smaller credit, which is often the cleaner outcome for state taxes.
A qualified small business — generally under $5 million in gross receipts this year and no gross receipts more than five years back — can elect in Section D to apply up to $500,000 of the credit against payroll taxes instead of income tax, then take it quarter by quarter on Form 8974. It is the reason a pre-revenue startup can still see cash from the credit, and we cover it fully in our startup guide.
Section F summarizes your qualified research expenses by type — wages, supplies, contract research. Section E is newer and more telling: it is a risk-assessment snapshot the IRS reads before deciding whether to look closer. When you report QREs, it asks for:
Section G asks you to itemize the credit by business component: what each project was, which of your QREs attach to it, and how the wage portion splits between direct research, supervision, and support. It is optional through tax year 2025. For tax years beginning after 2025, it becomes mandatory for most claimants, with two exemptions: qualified small businesses electing the payroll offset, and filers with no more than $1.5 million in QREs and $50 million in average gross receipts claiming on an original return. You report components covering at least 80% of total QREs, up to 50 components.
Form 6765 files with your income tax return for the credit year, original or amended. Claiming past years by amending is allowed — generally up to three years back — but refund claims carry extra requirements: since 2022 the IRS has required business-component specifics up front, and a claim without them can be rejected without examination. The safest path is the boring one: claim on time, on an original return, with the documentation already in hand.
Yes — the credit is claimed year by year. Each tax year you want the credit for needs its own Form 6765 with that year's return.
Whichever produces the better result you can defend. The ASC in Section B is simpler and fits most claimants; the regular credit in Section A can pay more when your base amount is low. Compute both before choosing.
Often no, even after it becomes mandatory. Qualified small businesses electing the payroll offset are exempt, and so are filers with QREs of $1.5 million or less and average gross receipts of $50 million or less claiming on an original return.
Generally yes, up to about three years back. But refund claims must include business-component detail up front or risk rejection, and the 280C reduced-credit election is not available on an amended return.
This guide is general information, not tax advice. Your situation has its own facts, so talk to a credentialed professional before you act on anything here.