Section — Instruction 6765 — Instructions for Form

Skip this section and go to Section B if:

You are electing the ASC, or
You previously elected the ASC and aren’t revoking the election on this return.

Line 1 Enter the amounts you paid or incurred to energy research consortia for energy research. Energy research doesn’t include any research that isn’t qualified research. In general, an energy research consortium is any organization described in section 501(c)(3), exempt from tax under section 501(a), organized and operated primarily to conduct energy research, and not a private foundation. See section 41(f)(6) for further details.

Any amount included on line 1 can’t be included elsewhere on the return.

Line 2 Enter the amounts the corporation (not to include S corporations, personal holding companies, and service organizations) paid in cash, under a written contract, for basic research to a qualified university, scientific research organization, scientific tax-exempt organization, or grant organization. See section 41(e) for details, including the definitions of qualified organizations.

Line 3 Enter the qualified organization base period amount based on minimum basic research amounts plus maintenance-of-effort amounts for the 3 preceding tax years. See section 41(e) for details.

Line 5 Enter your total QREs calculated from Section F, line 48. See Line 48 , later. If you are a member of a controlled group filing separately, enter only the member’s QREs and not the group total QREs. This amount must be computed and shown on the required group credit attachment (see instructions for this attachment under Item B—Controlled Group/Common Control , earlier).

Refer to Section F—Qualified Research Expenses Summary and Section G—Business Component Information , later, for reporting QREs by group members that file separate tax returns.

Line 6 The fixed-base percentage depends on whether you are an existing company or a start-up company.

The last line needs to include the total QREs of the controlled group, and
The total credit amount for the controlled group.

Instructions for Form 6765 (December 2025) 5

Group members filing separate tax returns enter the fixed base percentage computed for the entire group.

A start-up company is a taxpayer that had both gross receipts and QREs either:

For the first time in a tax year beginning after 1983, or
For fewer than 3 tax years beginning after 1983 and before

The fixed-base percentage for a start-up company is figured as follows.

For the first 5 tax years beginning after 1993 for which you have QREs, the percentage is 3%.
For the 6th tax year beginning after 1993 for which you have QREs, divide the aggregate QREs for the 4th and 5th such tax years by the aggregate gross receipts for those tax years, then divide the result by 6.
For the 7th tax year beginning after 1993 for which you have QREs, divide the aggregate QREs for the 5th and 6th such tax years by the aggregate gross receipts for those tax years, then divide the result by 3.
For the 8th tax year beginning after 1993 for which you have QREs, divide the aggregate QREs for the 5th, 6th, and 7th such tax years by the aggregate gross receipts for those tax years, then divide the result by 2.
For the 9th tax year beginning after 1993 for which you have QREs, divide the aggregate QREs for the 5th, 6th, 7th, and 8th such tax years by the aggregate gross receipts for those tax years, then divide the result by 1.5.
For the 10th tax year beginning after 1993 for which you have QREs, divide the aggregate QREs for the 5th through 9th such tax years by the aggregate gross receipts for those tax years, then divide the result by 1.2.
For the 11th and later tax years beginning after 1993 for which you have QREs, divide the aggregate QREs for any 5 of the 5th through 10th such tax years by the aggregate gross receipts for those tax years.

The fixed-base percentage for an existing company (any company that isn’t a start-up company) is figured by dividing the aggregate QREs for the tax years beginning after 1983 and before 1989 by the aggregate gross receipts for those tax years.

The fixed-base percentage for all companies (existing and start-up) must be rounded to the nearest 1/100th of 1% (that is, four decimal places) and must be the lesser of the calculated fixed-based percentage or 16%. In addition, when figuring your fixed-base percentage, you must reflect expenses for qualified research conducted in a U.S. territory, such as Puerto Rico, for all prior tax years included in the computation.

If short tax years are involved, see Regulations section 1.41-3(b).

Caution: Reduce gross receipts by returns and allowances. For a foreign corporation, include only gross receipts that are effectively connected with a trade or business in the United States (or in a U.S. territory, such as Puerto Rico, if applicable).

Line 7 Enter the average annual gross receipts (reduced by returns and allowances) for the 4 tax years preceding the tax year for which the credit is being determined. You may be required to annualize gross receipts for any short tax year.

For a foreign corporation, include only gross receipts that are effectively connected with a trade or business in the

United States (or in a U.S. territory, such as Puerto Rico, if applicable). Group members filing separate tax returns enter the average annual gross receipts computed for the entire group.

For a tax year that the credit terminates, the average annual gross receipts for the 4 tax years preceding the termination tax year are prorated for the number of days the credit applied during the tax year.

Line 13 If you elected to reduce the credit under section 280C at the top of the Form 6765, Item A, then multiply line 12 by 15.8% (0.158). If not, multiply line 12 by 20% (0.20). If you are a member of a controlled group enter your share of the credit. This amount must be computed and shown on the required group credit attachment. For attachment reporting requirements under Item B, see Item B—Controlled Group/ Common Control, earlier. For details refer to Section G—Business Component Information , later, for reporting QREs by group members that file separate tax returns under Section F and Section G.

If you don’t elect the reduced credit, you must reduce your domestic research or experimental expenditures under section 174A otherwise taken into account as a deduction or charged to a capital account by the amount of the research credit. With respect to taxable years beginning before January 1, 2025, if the credit exceeds the amount allowed as a deduction for the tax year for qualified research expenses or basic research expenses, reduce the amount chargeable to the capital account for the year for such expenses by the amount of such excess. Attach a statement to your tax return that lists the deduction amounts (or capitalized expenses) that were reduced. Identify the lines of your return (schedule or forms for capitalized items) on which the reductions were made. If you e-file, name the attachment “Form6765ItemASection280C.pdf.”

If you make an election to claim a portion of your research credit as a payroll tax credit, the amount elected is treated as a research credit for purposes of the reduced credit.