Key Takeaways
- Section G of Form 6765 remains optional until tax year 2026.
- Taxpayers will be required to report key R&D business components and qualified expenses when claiming the R&D credit, except for qualified small businesses or those meeting specific thresholds next tax year.
- The IRS has extended the feedback period on Section G implementation and the research credit refund claim transition period.
The IRS announced Section G of Form 6765 (Credit for Increasing Research Activities) will continue to be optional for all applicable taxpayers until tax year 2026.
Section G will be required for all taxpayers claiming the R&D credit unless the taxpayer is a qualified small business or has qualified research expenses equal to or less than $1.5 million gross receipts equal or less than $50 million.
Section G Requirements
Section G of Form 6765 requires taxpayers to:
- Identify and report business components that constitute 80% of total R&D spend for the year, up to a maximum of 50 individual business components reported.
- Identify and report qualified research expenses for each reported business component.
- Identify and report the qualified wage expenses by activity (direct involvement, supervision, and support) performed for each reported business component.
The IRS has also extended the period for feedback on implementing Section G (receiving comments until March 31, 2026) as well as the research credit refund claim transition period (through January 10, 2027).
New legislation and updated guidance create questions and planning opportunities. Our R&D tax incentives team can help you navigate this new environment.
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