Summary of Changes

2007 Form 6765 Major Changes
On the Form
1] Because the option to use more than one method only applied to
fiscal years overlapping 2006 and 2007, a second sentence is added to the
Section A--Regular Credit heading at the top of the form, as follows:
Skip this section and go to Section B or C if you are electing or previously elected
(and are not revoking) the alternative incremental credit or the alternative
simplified credit, respectively.
[sec. 104 (b) (3) of PL 109-432]
2] Line 17a is now Line 17 because Line 17b is outdated and removed. Also
removed is information related to electing another method because the option to
use more than one method only applied to fiscal years overlapping 2006 and
2007.
3] Because the option to use more than one method only applied to fiscal years
overlapping 2006 and 2007, the Section B heading is revised as follows:
Skip this section if you are completing Sections A or C.
Similarly, the Section C heading is revised as follows: Skip this section if you are
completing Sections A or B. [sec. 104 (b) (3) of PL 109-432]
4] On Lines 38, 39, and 40, the percentages are changed to 3%, 4%, and 5%,
respectively [IRC sec. 41(c) (4) (A) (i), (ii), and (iii)].
Also, the parenthetical "for a tax year ending after December 31, 2006, see
instructions for percentage" is outdated and removed from each of the lines.
5] Line 42a is now Line 42 because Line 42b is outdated and is removed.
Also, because the option to use more than one method only applied to fiscal
years overlapping 2006 and 2007, information related to electing another method
is removed from new Line 42. [sec. 104 (b) (3) of PL 109-432].
6] Lines 59 and 60 are removed because the option to use 2007 applicable
percentages only applied to fiscal year filers overlapping 2006 and 2007 [sec.
104(b)(3) of PL 109-432].
Consequently, the remaining lines are renumbered.
7] Because the option to use more than one method only applied to fiscal year
filers overlapping 2006 and 2007, Line 61 (old Line 63) is revised as follows:
• The first sentence is rewritten as, “Add line 17, 42, or line 59, (whichever
applies) to line 60.”
• The second sentence (on, if you completed Section C) is removed.
[sec. 104 (b) (3) of PL 109-432].

8] All references to 2006 are changed to 2007.
In the Instructions
1] The What’s New area was updated for current items.
2] A second paragraph under Who Must File is added as follows:
If you are a taxpayer that is not a partnership or S corporation, and your only
source of this credit is from a partnership, S corporation, estate, or trust, you are
not required to complete or file this form, with the following exception: you are a
taxpayer that is an estate or trust and the credit can be allocated to beneficiaries.
For more details, see the Instructions for Form 1041, Schedule K-1, box 13.
This is because some filers are directed to put the passed-thru credit directly
onto Form 3800 by such instructions.
3] The line references in the top partial paragraph of the third column on the third
page are changed to conform to the changes on the form. The last sentence in
the next paragraph (a reference to a Temp. Regulation) is removed because it is
outdated.
4] Under Specific Instructions, there are four changes:
• The first paragraph is replaced with the text “You can:” because the old
text related to the outdated 2006-2007 transitional rules for fiscal years.
• In the third paragraph, a reference to the outdated Temporary
Regulations sec. 1.41-8T is removed.
• The last paragraph (on revocation of an election) is removed as
redundant of the text in the previous paragraph.
5] Because the option to use more than one method only applied to fiscal year
filers overlapping 2006 and 2007, each of the Sections A, B, and C instructions
are rewritten.
Included now are references to the other credits and sections, indicating
the section is to be skipped if either of the other sections is completed (or if either
of the other credits is elected), as follows:
• The first paragraph under Section A-Regular Credit is rewritten to
include references to the alternative simplified credit and to Section C.

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•

The first paragraph under Section B-Alternative incremental Credit is
rewritten to include a reference to the alternative simplified credit.
Similarly, the first paragraph under Section C-Alternative Simplified
Credit is rewritten to include a reference to the regular credit and the
alternative incremental credit.

6] The instructions for Lines 17b, 38, 39, 40, 42, and 59, all having to do with the
outdated 2006-2007 transitional rules for fiscal years, are removed.
7] In the Section D-Summary instructions, the line references are changed to
conform to the changes on the form.
8] All references to 2006 are changed to 2007.
9] The instructions for line 1 were revised to include "for energy research" per
PL 110-172 section 6(c)(1).