The IRS updated Form 6765, the R&D tax credit form, to add Section G—a new requirement for project-level disclosure of qualified research activities. This is the most significant change to R&D credit reporting in years and affects most businesses claiming the credit.
What Section G Requires
Section G requires filers to report, for each of their top research projects: the name of the business component being developed or improved, a description of the research, the total qualified research expenses for the project, and a breakdown of wages, supplies, and contract research within those expenses.
Who Is Affected
Most businesses claiming the regular credit or the Alternative Simplified Credit (ASC) will need to complete Section G. There are small business exemptions—businesses with less than $1.5M in qualified research expenses may qualify for reduced disclosure—but most meaningful R&D credit claimants will need full Section G compliance.
Preparing for Compliance
The best preparation for Section G is to build your project tracking and documentation systems now, before the filing deadline. If you are working with Mainstreet or another R&D credit provider, make sure they are building Section G compliance into their process.
Key Takeaways
- Section G requires project-level R&D disclosure starting with 2025 tax years.
- Each major research project needs: business component description, research description, and expense breakdown by category.
- Start building project-level tracking now if you have not already.
