Section B—Alternative Simplified Credit (ASC)

Complete this section only if, instead of the regular credit:

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

Electing the ASC. You elect the ASC by completing Section B and attaching the completed Form 6765 to your timely filed (including extensions) original return for the tax year the election applies. An ASC election can be made on an amended return for a tax year only if you hadn’t previously claimed the research credit on an original return or amended return for that tax year. An extension of time to make the ASC election will not be granted.

Line 20 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).

6 Instructions for Form 6765 (December 2025)

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 21 Enter your QREs for the prior 3 tax years. If the credit terminates during the tax year, prorate the QREs for the prior 3 tax years for the number of days the credit applied during the tax year.

If you are a member of a controlled group, enter the total amount of the group’s QREs for the prior 3 tax years.

Line 26 If you elected to reduce the credit under section 280C at the top of the Form 6765, Item A, then multiply line 25 by 79% (0.79). If not, enter the amount from line 25 and see the line 13 instructions for the statement that must be attached. 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 attachments reporting requirements under Item B, see Item B—Controlled Group/ Common Control , earlier. 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.