OMB No. 1545-0619 Credit for Increasing Research Activities Form 6765

© See separate instructions.

Department of the Treasury

Internal Revenue Service

Attachment © Attach to your return. Sequence No. 81

Name(s) shown on return Identifying number

Current Year Credit

1 Basic research payments paid or incurred to qualified organizations (see instructions) 1

2 Qualified organization base period amount 2

3 Subtract line 2 from line 1. If zero or less, enter -0- 3

4 Wages for qualified services (do not include wages used in figuring the work opportunity credit) 4

5 Cost of supplies 5

6 Rental or lease costs of computers (see instructions) 6

7 Enter the applicable percentage of contract research expenses (see instructions) 7

8 Total qualified research expenses. Add lines 4 through 7 8

9 9 %

10 Enter average annual gross receipts (see instructions) 10

11 Base amount (see instructions for computation) 11

12 Subtract line 11 from line 8. If zero or less, enter -0- 12

13 Multiply line 8 by 50% (.50) 13

14 Enter the smaller of line 12 or line 13 14

15 Add lines 3 and 14 15

Regular credit. If you are not electing the reduced credit under section 280C(c), multiply line 15

by 20% (.20), enter the result, and see the instructions for the schedule that must be attached.

If you are electing the reduced credit, multiply line 15 by 13% (.13) and enter the result. Also,

write “Sec. 280C” on the dotted line to the left of the entry space. Skip lines 17 through 39 and

go to line 40

16

16

For Paperwork Reduction Act Notice, see separate instructions. Form 6765 (1997)

Part I

Cat. No. 13700H

Enter fixed-base percentage, but not more than 16% (see instructions)

Section A—Regular Credit. Include on lines 1 and 4 through 7 ONLY costs paid or incurred before July 1, 1998. Skip this section

and go to Section B if you are electing or had previously elected the alternative incremental credit.

Section B—Alternative Incremental Credit. If the alternative incremental credit election does not apply to your first tax year beginning

after June 30, 1996, and before July 1, 1997, include on lines 17 and 21 through 24 ONLY costs paid or incurred before July 1, 1998.

Skip this section if you completed Section A.

Multiply line 26 by 1% (.01)

Subtract line 27 from line 25. If zero or less, enter -0-

Multiply line 26 by 1.5% (.015)

Subtract line 29 from line 25. If zero or less, enter -0-

Subtract line 30 from line 28. If zero or less, enter -0-

Multiply line 26 by 2% (.02)

Subtract line 32 from line 25. If zero or less, enter -0-

Subtract line 33 from line 30. If zero or less, enter -0-

Multiply line 31 by 1.65% (.0165)

Multiply line 34 by 2.2% (.022)

Multiply line 33 by 2.75% (.0275)

Add lines 20, 35, 36, and 37

Alternative incremental credit. If you are not electing the reduced credit under section 280C(c),

enter the amount from line 38, and see the line 16 instructions for the schedule that must be

attached. If you are electing the reduced credit, multiply line 38 by 65% (.65) and enter the result.

Also, write “Sec. 280C” on the dotted line to the left of the entry space

Flow-through research credit(s) from a partnership, S corporation, estate, or trust

Total current year credit for increasing research activities. Add line 16 OR line 39 to line 40

17 Basic research payments paid or incurred to qualified organizations (see the line 1 instructions)

18 Qualified organization base period amount

19 Subtract line 18 from line 17. If zero or less, enter -0-

20 Multiply line 19 by 20% (.20)

21 Wages for qualified services (do not include wages used in figuring the work opportunity credit)

22 Cost of supplies

23 Rental or lease costs of computers (see the line 6 instructions)

24 Enter the applicable percentage of contract research expenses (see the line 7 instructions)

25 Total qualified research expenses. Add lines 21 through 24

26 Enter average annual gross receipts (see the line 10 instructions)

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1997
Form 6765 (1997) Page 2

Tax Liability Limit (See Who Must File Form 3800 to find out if you complete Part II or file Form 3800.)

● Individuals. Enter amount from Form 1040, line 39

● Corporations. Enter amount from Form 1120, Schedule J, line 3 (or Form 1120-A, Part I, line 1) 42

● Other filers. Enter regular tax before credits from your return

43a Credit for child and dependent care expenses (Form 2441, line 9) 43a

b Credit for the elderly or the disabled (Schedule R (Form 1040), line 20) 43b

43d

District of Columbia first-time homebuyer credit (Form 8859)

d

e 43e

Possessions tax credit (Form 5735)

43f f

g 43g

h Credit for fuel from a nonconventional source

Qualified electric vehicle credit (Form 8834, line 19)

Add lines 43a through 43i 43j

44 Net regular tax. Subtract line 43j from line 42 44

45 Alternative minimum tax:

● Individuals. Enter amount from Form 6251, line 28

● Corporations. Enter amount from Form 4626, line 15 45

● Estates and trusts. Enter amount from Form 1041, Schedule I, line 42

47 Tentative minimum tax (see instructions):

● Individuals. Enter amount from Form 6251, line 26

47

● Corporations. Enter amount from Form 4626, line 13

● Estates and trusts. Enter amount from Form 1041,

Schedule I, line 38

48 If line 44 is more than $25,000, enter 25% (.25) of the excess (see

instructions)

50 Subtract line 49 from line 46. If zero or less, enter -0- 50

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Part II

%

%

Adoption credit (Form 8839, line 10)

c 43c

42 Regular tax before credits:

46 Net income tax. Add lines 44 and 45 46

49 Enter the greater of line 47 or line 48 49

%

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Credit for increasing research activities allowed for the current year. Individuals, estates,

and trusts: Enter the smaller of line 41 or the amount from the formula in the instructions for

line 51 (but do not enter more than line 50) here and on Form 1040, line 44; or Form 1041,

Schedule G, line 2c. Corporations: Enter the smaller of line 41 or line 50 here and on Form

1120, Schedule J, line 4d; Form 1120-A, Part I, line 2a; or the applicable line of other returns

43h

Mortgage interest credit (Form 8396, line 11)

i 43i

j

Foreign tax credit (Form 1116, line 32, or Form 1118, Sch. B, line 12)