6 7 6 5 Credit for Increasing Research Activities OMB No. 1545-0619
Form (or for claiming the orphan drug credit) 1990
Department of the Treasury > See separate Instructions. Attachment
Internal Revenue Service > Attach to your return. Sequence No. 81
Name(s) as shown on return Identifying number

Tentative Orphan Drug Credit

Wi
cuales clinical testing expenses (do not include any amounts claimed as
current year research expenses on line 18 below) . 1
2 _Limitation—Enter 50% of line 1 (see instructions). fo 2
3 Flow-through orphan drug credit(s) from a partnership, S corporation, ‘estate, ortrust 3
4 Tentative current year orphan drug credit—Adq lines 2and3 . 4

Computation of the Tax Liabillty Limitation for the Orphan Drug and Research Credits

5a_Individuals—Enter amount from Form 1040, line 40 .

b Corporations—Enter amount from Form 1120, Schedule J, line 3 (Form 11204 A filers claiming 5
the research credit, enter amount from Form 1120-A, Part! line 1) . Soe
¢ Other filers—Enter regular tax before credits from your return .
6 Credits that reduce regular tax before the orphan drug credit:
a Credit for child and dependent care expenses (Form 2441). . . . . .| 6a
b Credit for the elderly or the disabled (Schedule R, Form 1040). . . . ,|_6b
c Foreign tax credit (Form 11160rForm1118). . . ..... . .[6€
d Possessions tax credit (Form5735) . . ......... . {6d
e Mortgage interest credit (Form 8396). . . . . . be
f Total credits that reduce regular tax before the orphan drug credit. add lines 6a through 6e 6f
7 Net regular tax (subtract line 6f from line 5) . rs vA
8 Tentative minimum tax:
@ Individuals—Enter amount from Form 6251, line17. . .
b Corporations—Enter amount from Form 4626, line 13 . } 8
¢ Estates and Trusts—Enter amount from Form 8656, line 37
9 Excess of net regular tax over tentative minimum tax—Subtract line 8 from line 7 . 9
10 __ Orphan drug credit—Enter here and on the appropriate line of your return the smaller of line 4 or line9 | 10
BEET Current Year Credit for Increasing Research Activities
11 Basic research payments paid or incurred to qualified organizations in the taxable year . 11
12 Base period amount .. . 12
13. Subtract line 12 from line 11—If less than zero, ‘enter 2670 | 13
Qualified research expenses paid or incurred in the taxable year (lines 14—17):
14 Wages for qualified services (do not include wages used in Feuring the jobs credit) 14
15 Cost of supplies . Fe 15
16 Rental or lease costs of computers . 16
17 65% of contract expenses : 17
18 Total qualified research expenses—Add lines 14 through 7 . 18
19 Enter fixed-base percentage, but not more than 16% (see instructions) . 19 %
20 Enter average annual gross receipts (see instructions) 20
21 Base amount—Multiply line 20 by the percentage on line 19 21
22 Subtract line 21 from line 18 an 22
23 Multiply line 18 by 50% (.50) p23}
24 Enter smaller of line 22 or 23 24
25 Add lines 13. and 24 25
26 = Tentative credit—Multiply line 25 by 20% ( 20). If you do not elect the reduced credit under Section
280C(c), enter the result and see the instructions. If you do elect the reduced credit, multiply the result
by 66% (.66) and enter that amount instead. Also write “Sec. 280C” in the margin to the right of the
entry space . a a 26
27 Flow-through research credit(s) from a | partnership, Ss corporation, ‘estate, ortrust : : 27
28 Current year credit for increasing research activities—Add lines 26 and 27. Enter here and see
“Claiming the Credit” on page 2. 28

See Paperwork Reduction Act Notice on page 2.

Form 6765 (1990)


Form 6765 (1990)

Computation of Allowable Research Credit

29 From the net regular tax on line 7, Part II, subtract any orphan drug credit from line 10, Part ll, and any
nonconventional source fuel credit shown on your return. Enter the result here Soe eee

30 Net income tax:
a Individuals—Add line 29 above and line 19 of Form 6251. Enter the total .
b Corporations—Add line 29 above and line 15 of Form 4626. Enter the total

¢ Estates and Trusts—Add line 29 above and line 39 of Form 8656

31. Limitation—lf line 29 is more than $25,000, enter 25% of the excess (see Instructions)

32 Subtract line 8, Part Il, or line 31, whichever is greater, from line 30. Enter the result. If less than zero, |

enter zero. :
33 Corporations—Enter here and on the appropriate line of your return the smaller of line 28 or fine 31,
This is your General Business Credit for 1990 . an
34 Individuals, estates, and trusts—Enter here and on the appropriate tine of your return the smaller of

29

30

31

32

33

line 28 or the amount from the formula in the instructions for line 34 (but do not enter more than line

32). This is your General Business Credit for 1990 .

34

Paperwork Reduction Act Notice. —
We ask for the information on this form
to carry out the Internal Revenue laws
of the United States. You are required
to give us the information. We need it
to ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax.

The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:

Recordkeeping . . 7hrs., 39 min
Learning about the

laworthe form . . Lhr., 5 min.
Preparing and sending

the formtoIRS . Lhr., 16 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form more
simple, we would be happy to hear from
you. You can write to both the IRS and
the Office of Management and Budget
at the addresses listed in the
instructions of the tax return with
which this form is filed.

Claiming the Credit

The research credit shown on line 28 is
one of six credits that make up the
General Business Credit. The General
Business Credit consists of the
following credits: (1) investment credit,
(2) jobs credit, (3) alcohol fuels credit,
(4) research credit, (5) low-income
housing credit, and (6) disabled access
credit.

“US. GOVERNMENT PRINTING OFFICE: 1601-266-977(2)

If you have more than one of these
credits for 1990, a carryback or
carryforward of any of these credits, or a
research credit from a passive activity,
you must attach the appropriate credit
forms and summarize them on Form
3800, General Business Credit. Do not
complete Part IV above. If you have only
a 1990 research credit and the credit is
not from a passive activity, you do not
have to file Form 3800 this year.
Instead, complete Part IV above.