Form 6765 Section G in 2026: What Ohio R&D Credit Claimants Must Report

For tax years beginning after December 31, 2025, Form 6765 Section G becomes an important compliance requirement for many businesses claiming the federal R&D Tax Credit. The section requires more detailed reporting by business component rather than relying only on company-wide qualified research expense totals.


Quick answer: For many 2026 R&D Tax Credit claims, Section G requires taxpayers to identify business components, connect qualified research expenses to those components, and report detailed wage, supply, software, and contract research information. Certain taxpayers may qualify for exceptions, so filing requirements should be reviewed carefully.



Since 2004, RCG Tax Partners has completed more than 25,000 R&D tax credit studies and identified over $750 million in tax savings. Its team includes CPAs, tax specialists, engineers, technical writers, and architects who support R&D Tax Credit studies with detailed technical and expense documentation.

What Is Section G of Form 6765?  

Section G is the Business Component Information section of Form 6765.


A business component may be a product, process, computer software, technique, formula, or invention used in the taxpayer’s trade or business or held for sale, lease, or license.



For taxpayers required to complete Section G, the reporting focus shifts toward connecting research expenses to specific business components.

Who May Need to Complete Section G in 2026?  

For tax years beginning after 2025, many taxpayers claiming the R&D Tax Credit must complete Section G unless an IRS exception applies.


Businesses should review factors such as:

  •  Total qualified research expenses
  • Gross receipts
  • Whether the return is original or amended
  • Qualified small business status
  • Controlled-group rules



Companies should not assume they are exempt based only on size or prior filing practices.

How Does the 80% and Top 50 Rule Work?  

One of the most important Section G requirements is the business-component reporting threshold.


Taxpayers generally identify business components representing at least 80% of total qualified research expenses, subject to a maximum of 50 individually reported business components.


Remaining components may generally be grouped together under an aggregate business-component category.



This means a company with many R&D projects may not need to list every project separately, but it still needs a reliable method for identifying which components account for the largest share of QREs.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

What Information Is Reported?  

Section G can require more detail than a company-wide total.

Reporting Area What May Be Required
Business component Name or unique identifier
Component type Product, Process, or All Others
Entity information EIN and business activity code
Qualified wages Wages connected to qualified activity
Supplies Qualified supply costs
Contract research Qualified outside research costs
Software Additional classification when applicable

The business component names or identifiers should be consistent with the company’s books and technical records.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

Why Business Component Reporting Matters  

The main change is not simply that Form 6765 has more fields. Businesses may need to connect the tax calculation more directly to specific technical work.


A practical reporting chain is:

Business component → qualified activity → employees → expenses → Form 6765


For Ohio manufacturers, software developers, engineering firms, medical device companies, and other technical businesses, this makes early project organization more important.


Waiting until tax return preparation to reconstruct project activity may make the reporting process more difficult.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

How Wage Reporting Becomes More Detailed  

Qualified wages may need to be separated based on employee activity.


Section G distinguishes employees who:


Conduct qualified research
Employees directly performing technical research.


Directly supervise qualified research
Employees providing direct first-line supervision.


Directly support qualified research
Employees providing direct support to qualified research activity.



This increases the importance of connecting engineers, developers, technicians, supervisors, and other employees to the business components being reported.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

What Records Help Support Section G?  

Useful records may include:

  •  Project lists and internal project codes
  • Engineering notes
  • Prototype and testing records
  • Software development documentation
  • Employee time support
  • Payroll records
  • Supply records
  • Contract research agreements
  • Technical meeting notes


The goal is to create a clear connection between technical activity and the qualified expenses reported on the form.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

What About Software Business Components?  

Software projects may require additional classification.


Depending on the facts, software may be categorized as internal-use, dual-function, non-internal-use, or another applicable classification.



Businesses should not classify software based only on a project name. The actual function, users, development purpose, and technical facts should be reviewed.

Cost Segregation may apply to many property types, including warehouses, manufacturing facilities, medical offices, dental offices, office buildings, industrial properties, retail spaces, and mixed-use commercial properties.

A Practical Section G Readiness Checklist  

Before preparing a 2026 R&D Tax Credit claim, Ohio businesses should be able to answer:


What are our business components? 

Identify products, processes, software, techniques, formulas, or inventions connected to qualified research.


Which components represent most of our QREs? 

Determine which components fall within the 80% and Top 50 reporting framework.


Can wages and expenses be tied to those components? 

Employee activity, supplies, and contract research should connect to the projects being reported.


Do project identifiers match company records? 

Use consistent names across technical files, accounting records, and Form 6765 reporting.

FAQs About Form 6765 Section G in 2026

  • Is Section G mandatory for 2026 R&D Tax Credit claims?

    For many taxpayers, yes. Section G applies to tax years beginning after 2025, subject to specific exceptions.

  • Does every R&D project need to be reported separately?

    Not necessarily. Taxpayers generally report business components representing at least 80% of QREs, subject to the maximum number of individually reported components.

  • What is a business component?

    A business component may be a product, process, software, technique, formula, or invention connected to the taxpayer’s business.

  • Why does Section G change documentation needs?

    Because taxpayers may need to connect qualified expenses to specific business components rather than relying only on company-wide totals.

  • Should Ohio businesses prepare before year-end?

    Yes. Organizing business components and supporting records before return preparation can make Section G reporting easier to support.

Prepare for Form 6765 Section G in 2026 

Form 6765 Section G in 2026 makes business-component reporting more important for Ohio R&D Tax Credit claimants. Companies may need to connect technical projects, employee activity, supplies, software, and contract research expenses to the business components reported on the form.


RCG Tax Partners supports Ohio businesses with R&D Tax Credit analysis, business-component identification, qualified expense review, and documentation designed to support Form 6765 reporting.

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