Part III

Credit for Increasing Research Activities OMB No. 1545-0619

Form 6765 (or for claiming the orphan drug credit)

© See separate instructions. Department of the Treasury

Internal Revenue Service

Attachment © Attach to your return. Sequence No. 81

Name(s) as shown on return Identifying number

Current Year Orphan Drug Credit

Qualified clinical testing expenses paid or incurred (do not include any

amounts claimed as current year research expenses on line 18 below)

1

1

2 Current year credit. Multiply line 1 by 50% (.50) (see instructions) 2

3 Flow-through orphan drug credit(s) from a partnership, S corporation, estate, or trust 3

4 Total current year orphan drug credit. Add lines 2 and 3 4

Tax Liability 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 1120-A filers

claiming the research credit, enter amount from Form 1120-A, Part I, line 1)

5

c 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, line 10) 6a

b Credit for the elderly or the disabled (Schedule R (Form 1040), line 21) 6b

6c

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

c

6d

Possessions tax credit (Form 5735, line 14)

d

6e

Mortgage interest credit (Form 8396, line 11)

e

Add lines 6a through 6e 6f f

7 Net regular tax. Subtract line 6f from line 5 7

8 Tentative minimum tax (see instructions):

a Individuals. Enter amount from Form 6251, line 26

b Corporations. Enter amount from Form 4626, line 14 8

c Estates and trusts. Enter amount from Form 1041, Schedule H, line 37

9 Excess of net regular tax over tentative minimum tax. Subtract line 8 from line 7 9

10

10

Orphan drug credit allowed for the current year. Enter here and on the appropriate line of your

return the smaller of line 4 or line 9

Current Year Credit for Increasing Research Activities

11 Basic research payments paid or incurred to qualified organizations 11

12 Base period amount 12

13 Subtract line 12 from line 11. If less than zero, enter -0- 13

Qualified research expenses paid or incurred (lines 14–17):

14 Wages for qualified services (do not include wages used in figuring the jobs credit) 14

15 Cost of supplies 15

16 Rental or lease costs of computers 16

17 Enter 65% (.65) of contract research expenses 17

18 Total qualified research expenses. Add lines 14 through 17 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 22

23 Multiply line 18 by 50% (.50) 23

24 Enter the smaller of line 22 or 23 24

25 Add lines 13 and 24 25

Current year 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 for the schedule that must be attached.

26

26

27 Flow-through research credit(s) from a partnership, S corporation, estate, or trust 27

28 Total current year credit for increasing research activities. Add lines 26 and 27. Enter here

and see Claiming the Credit on page 2 to see if you have to complete Part IV or file Form 3800 28

For Paperwork Reduction Act Notice, see page 2. Form 6765 (1993)

Part I

%

%

Cat. No. 13700H

Part II

Note: If you elect the reduced credit, multiply line 25 by 13% (.13) and enter that amount instead.

Also write “Sec. 280C” in the margin to the right of the entry space
Form 6765 (1993) Page 2

Tax Liability Limitation for the Research Credit

29 Net regular tax for research credit:

29a

30 Net income tax:

a Individuals. Add line 29f above and line 28 of Form 6251 

b Corporations. Add line 29f above and line 16 of Form 4626 30

c Estates and trusts. Add line 29f above and line 39 of Form 1041, Schedule H 

31 If line 29f is more than $25,000, enter 25% (.25) of the excess (see instructions) 31

32 Subtract line 8 or line 31, whichever is greater, from line 30. If less than zero, enter -0- 32

33 Corporations. Enter here and on the appropriate line of your return the smaller of line 28 or line

32. This is your General Business Credit for 1993 33

34 Individuals, estates, and trusts. Enter here and on the appropriate line of your return the smaller

of 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 1993 34

Paperwork Reduction

Act Notice

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

If you have more than one general

business credit for 1993, a carryback or

carryforward of any of these credits, or a

research credit from a passive activity,

file Form 3800. Use it instead of Part IV

to figure the tax liability limitation.

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is:

Claiming the Credit

The research credit shown on line 28 is

one of the credits that make up the

general business credit.

Recordkeeping 8 hr., 51 min.

Learning about the

law or the form 53 min.

Preparing and sending

the form to the IRS 1 hr., 5 min.

%

Part IV

If you have only a 1993 research

credit and the credit is not from a

passive activity, complete Part IV above.

You do not have to file Form 3800 for

this year.

a

b

c

e

f

Net regular tax from line 7

Orphan drug credit from line 10

Credit for fuel from nonconventional source 

Add lines 29b through 29d

Net regular tax. Subtract line 29e from 29a 

29b

29c

29e

29f

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.

d Qualified electric vehicle credit (Form 8834, line 17) 29d

Printed on recycled paper

The general business credit includes

the investment credit (Form 3468), jobs

credit (Form 5884), credit for alcohol

used as fuel (Form 6478), research

credit (Form 6765), low-income housing

credit (Form 8586), enhanced oil

recovery credit (Form 8830), disabled

access credit (Form 8826), and

renewable electricity production credit

(Form 8835). The Revenue

Reconciliation Act of 1993 added the

following new credits to the general

business credit: empowerment zone

employment credit (Form 8844), Indian

the Office of Management and Budget

at the addresses listed in the

instructions of the tax return with which

this form is filed.

employment credit (Form 8845), credit

for employer social security taxes paid

on certain employee cash tips (Form

8846), and credit for contributions to

certain community development

corporations (Form 8847). Generally, the

new credits are allowed for expenditures

incurred after December 31, 1993. See

the new credit forms and Form 3800,

General Business Credit, for other

details.