United States: Form 6765 Section G | Research Credit Integrity Alliance

Form 6765, Credit for Increasing Research Activities, is the form used to figure and claim the federal research credit. Section G, on pages 3 and 4 of the form, asks for information about each business component behind the claim. This page explains what Section G asks, who must complete it and from when, and how it links to the rest of the form and to refund claims.

The form and its instructions

The current form is marked "Rev. December 2024". Its instructions, revised in December 2025, say they are for use with the January 2025 revision of the form.1 2

What a business component is

The research credit tests are applied separately to each business component. The statute defines a business component as any product, process, computer software, technique, formula or invention which is to be held for sale, lease or license, or used by the taxpayer in a trade or business. A plant process, machinery or technique for commercial production of a business component is treated as a separate business component.3 For simplified reporting, Section G uses three types: "Product", "Process" and "All Others".2

When Section G applies

Tax year and filing	Section G
Tax years beginning before 2026	Optional for all filers; amended returns follow the separate rules for research credit claims2
Tax years beginning after 2025	Required, unless an exception applies2
Amended returns that claim a new or increased research credit	Column 49(f) is required; see below2

For tax years beginning after 2025, Section G is required unless either:2

the business is a qualified small business, as defined in section 41(h)(3), and has checked the box to claim a reduced payroll tax credit; or
all three of these apply: total qualified research expenses (QREs), determined at the controlled group level, are $1.5 million or less; average annual gross receipts for the prior three tax years are $50 million or less, as determined under section 448(c)(3); and the business is reporting the research credit on an original return.

Section F of the form asks directly: "Are you required to complete Section G?"1

What Section G asks for

Section G has two parts. Lines 49(a) to 49(f) describe each business component, and columns 50 to 56 allocate its expenses.1 2

Column	What is entered
49(a)	The EIN of the entity associated with the business component and conducting the research activities2
49(b)	That entity's principal business activity code2
49(c)	The business component's name or a unique alphanumeric identifier, consistent with how the business keeps the books and records that substantiate the research and its expenses2
49(d)	The business component type: Product, Process or All Others2
49(e)	For software, the software type: internal use software, dual function software, non internal use software, or excepted from internal use software treatment2
49(f)	The information sought to be discovered (amended returns only; see below)1 2
50	Wages of people engaged in the actual conduct of qualified research2
51	Wages for direct supervision of qualified research, meaning first-line management2
52	Wages for direct support of qualified research2
53	Total qualified wages (columns 50 to 52)2
54	Supplies used in the conduct of qualified research2
55	Rental or lease of computers used in qualified research2
56	The applicable amount of contract research expenses2

The instructions give examples: direct support includes a laboratory worker cleaning equipment used in qualified research, or a clerk compiling research data, but not general administrative services such as payroll.2

The "80%/Top 50" rule

A business that must complete Section G reports, by business component, at least 80 percent of its total QREs, but no more than 50 business components. The instructions call this the "80%/Top 50" business components.2

Business components are listed in descending order of QREs, and are generally determined at the controlled group level.2
Any remaining business components are reported together on one line labeled "Aggregate Business Components", with only the expense columns completed.2
A member of a controlled group that files a separate return applies the 80 percent test to its own QREs.2
A paper filer with more than 15 business components attaches additional sheets.2

Section E of the form separately asks for the total number of business components generating the QREs, not just those reported in Section G.2

Special cases

ASC 730 Directive. A business that follows the ASC 730 Directive and checks "Yes" on line 41 makes a single entry in Section G for that amount. If the entry is at least 80 percent of total QREs, no other business components need be reported.2

Statistical sampling. A business that used statistical sampling under Revenue Procedure 2011-42 still reports the 80%/Top 50 business components, whichever components were in its sample.2 The instructions add that it must keep the records required by Treasury regulation section 1.41-4(d) and section 6001.2 That regulation requires records in sufficiently usable form and detail to substantiate that the expenditures claimed are eligible for the credit.4

Amended returns and column 49(f)

Column 49(f) asks the business to describe the information sought to be discovered.1 The instructions say it is currently required only on an amended return that claims a research credit not reported on the original return, or increases it, and not on timely filed original returns.2 On such amended returns, the business must also follow the IRS's required information procedures for a valid research credit refund claim.2 Those procedures are described on United States: Refund claim requirements.

Since 18 June 2024 the IRS has waived the requirement to name the individuals who performed each research activity and the information each sought to discover at the time a refund claim is filed, but it may request them on examination.5 The instructions read for this page do not explain how that waiver relates to column 49(f).

How Section G links to the rest of the form

If a business completes Section G, the column totals carry into Section F: column 53 to line 42 (wages), column 54 to line 43 (supplies), column 55 to line 44 (computers) and column 56 to line 45 (contract research).2 The instructions tell filers to complete Section G before Section F.2

What Section G does not ask

Section G asks about entities, business components and expenses.1 Neither the form nor its instructions ask who prepared the credit calculation or how any adviser was paid.1 2 A paid preparer is identified on the tax return itself; see United States: Preparer identification.

Sources

Internal Revenue Service, Form 6765, Credit for Increasing Research Activities (Rev. December 2024), pages 1 to 4, including Section F question A and Section G. https://www.irs.gov/pub/irs-pdf/f6765.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), What's New, "Business Component", Section E line 37, Section F lines 42 to 45, "Requirements To Complete Section G", "How To Complete Section G", "ASC 730 Directive Single Entry for Section G", "Statistical Sampling", "Section G, Columns 49(a) to (f)", "Section G, Columns 50 to 56" and "Research Credit Claims on Amended Returns". https://www.irs.gov/instructions/i6765 (accessed 11 October 2026). Back
Office of the Law Revision Counsel, 26 U.S.C. 41, Credit for increasing research activities, subsection (d)(2), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleA-chap1-subchapA-partIV-subpartD-sec41.htm (accessed 11 October 2026). Back
Treasury Department and Internal Revenue Service, 26 CFR 1.41-4, Qualified research for expenditures paid or incurred in taxable years ending on or after December 31, 2003, paragraph (d). https://www.ecfr.gov/current/title-26/section-1.41-4 (accessed 11 October 2026). Back
Internal Revenue Service, Research credit claims (Section 41) on amended returns frequently asked questions, question 21 (page last reviewed or updated 1 October 2026). https://www.irs.gov/businesses/corporations/research-credit-claims-section-41-on-amended-returns-frequently-asked-questions (accessed 11 October 2026). Back