R&D Credit Limit

[Edsel]

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.

[jklcpa]

These credits ultimately flow to the form 3800 and, as such, they should have a 20-year carryforward under sec 38(b).  I think that is where you will find your answer. Code sec 41(a) covers this credit and refers back to sec 38 and its limitations, specifically sec 38(b)(4) for this R&D-related credit.