C
R&D Credit Calculation Methods
Regular Credit vs. Alternative Simplified Credit
Guide
Alternative Simplified Credit (ASC) Method
14% × (current-year QREs − 50% of avg prior 3-year QREs). If no prior-year QREs: 6% of current-year QREs. Most commonly used method.
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Guide
Regular Credit (RC) Method
20% × (current-year QREs − base amount). Base amount = fixed-base % × avg prior 4-year gross receipts. Requires historical gross receipts data.
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Guide
Controlled Group Credit Calculation Rules
All members of a controlled group must use the same credit calculation method (RC or ASC) per Treasury Reg. §§1.41-6 and 1.41-7.
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