R&D Credit Carryforward - How Many Years?

[Snaggletooth]

A client has credits for "increasing" R&D costs dating back to 2001. There has been insufficient income to absorb all the credits. Is there a limit to how many years these credits can be rolled forward?

Looked at section 174 as well as instructions to form 6765 and don't see any discussion as to whether there is a time limit. Form 6765 addresses current year only and thus is not relevant to this discussion.

Responses are appreciated.

[Gene V]

A client has credits for "increasing" R&D costs dating back to 2001. There has been insufficient income to absorb all the credits. Is there a limit to how many years these credits can be rolled forward?

Looked at section 174 as well as instructions to form 6765 and don't see any discussion as to whether there is a time limit. Form 6765 addresses current year only and thus is not relevant to this discussion.

Responses are appreciated.

Doing a Google search, I come up with 20 years carry forward and 1 year back.

[Snaggletooth]

Thanks Gene

I appreciate your taking the time to do a Google search, Gene V.

Wonder why you can Gargle up an answer, but cannot find an answer through typical IRS reading material? But I've already admitted I am a poor researcher. TTB doesn't address this either, but they can't include everything or you would need a wheelbarrow to haul it around.

[Roland Slugg]

Code §174 deals with the R&D deduction. The credit is covered by §41, and it, in turn, is one of many credits collectively called the "general business credit" and covered by §38. The carryover period is 20 years (plus a 1 year carry back), but there are limitations in each carryover year.

In addition to F-6765, you also need F-3800.