HR Fast Facts: R&D Tax Credit Form 6765 and Form 8974

The Federal Research and Development (R&D) tax credit, also known as the Research and Experimentation (R&E) tax credit, is intended to reward U.S. based companies to increase their investment in R&D activities.

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Payroll Tax Rates and Benefits Plan Limits for 2023

The Federal Research and Development (R&D) tax credit, also known as the Research and Experimentation (R&E) tax credit, is intended to reward United States based companies to increase their investment in R&D activities.

What are these forms? 

Federal form 6765 is a tax credit for increasing research and Federal form 8974 is a specific small business tax credit for increasing research. A qualified small business that elects to claim the payroll tax credit will claim it against the employer’s portion of social security tax on its employment tax return for the first quarter that begins after it files the return reflecting the payroll tax election.

A qualified small business claiming the payroll tax credit on its employment tax return must complete Form 8974.

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