Research credit

In accounting, research credit means a federal general business creditFoundationsCreditThe right column. It increases liabilities, equity and revenue, and decreases assets and expenses. for qualified research expensesResearch creditQualified research expensesWhat the credit is computed on: wages for qualified services — doing, directly supervising or directly supporting qualified research (all of a person's wages once that is 80% or more of them) — plus supplies used in the research, rented off-site computers, and 65% of contract research paid to others — computed on Form 6765Research creditForm 6765The IRS form that figures the research credit, makes the §280C reduced credit election (Item A), the ASC election (Section B) and the qualified small business payroll election (Section D), and reports QREs (Section F) and business components (Section G, required for tax years beginning after 2025 with exceptions) by the regular method or the alternative simplified creditResearch creditAlternative simplified creditThe research credit computed as 14% of QREs above 50% of the average QREs of the three prior years, or 6% of current QREs if any one of those years had none; elected on a timely filed original return (or an amended one only if no credit was claimed for that year) and binding for later years unless revoked, used against income tax, carried back one year and forward twenty when unused, or, for a qualified small business, elected against payroll tax.