USA R&D Tax Credit Pass Through Holding Co to Individual Partners?

[nrom]

In a scenario where the Operating Company (LLC-P) is owned by a Holding Company (LLC-P), does the Operating Company's R&D Credit reported on the K-1 to the Holding Company (Line 15 - code M) flow through to the Holding Company's individual partners' K-1?

The software I'm using is not pushing the credit down to the individual partners, should I manually add it to the individual partners' K-1's?

 

[nrom]

Thank you Leia. I was able to confirm with a local tax accountant that the R&D credit should pass through the holding company to the individual partners. I realized that for the software I'm using (H&R Block Business) to calculate the pass through I had to add the form 6765. The form 6765 in the Holding Company is blank except for line 37 which should be populated with the R&D credit from Line 15 code M of the Operating Company K-1. After adding 6765 the credit is now properly reported on the Holding Company K-1 on a prorated basis per Partner.