Form 6765: Section G becomes required after 2025

The December 2025 instructions (for the January 2025 revision of the form) say Section G is optional for all filers for tax years beginning before 2026, and required for tax years beginning after 2025, subject to the Section G guidelines.

They also explain new section 174A: domestic research and experimental costs paid or incurred in tax years beginning after 2024 can be deducted, or capitalized and amortized over at least 60 months. Rev. Proc. 2025-28 covers transition options for amounts from 2022 to 2024.

Section G asks for detail by business component. Clients who track research only as one lump of wages will struggle. Start 2026 with time and cost tracked by project.

• A list of projects or products the client worked on during the year.
• Wages, supplies and contract research by project.
• Where each contractor performed the work, since foreign research is still amortized over 15 years.

The reduced credit election under section 280C is made on Item A at the top of the form, on a timely filed original return. A qualified small business can apply up to $500,000 of the credit against payroll tax.

Tagging research bills and contractor payments to project classes in HelloBooks during the year gives you the per-component cost list Section G asks for.