Why aftermarket builders qualify
The four-part testNew parts count as R&D
A part or upfit only has to be new to your shop to count. It does not need to be new to the industry.
Every fitment has unknowns
Will the part clear the frame and hold under load? Answering that is qualified work.
Dyno pulls are experimentation
Test fits, dyno runs, and revised prototypes satisfy the experimentation test. Your shop runs on it.
The science is already there
Your builds rest on mechanical engineering and physics. For builders, the science test is the easy part.
A short study shows which of your builds qualify, and proves it. Read the four-part test in the words of the statute.
What qualifies in practice
Work your shop already does- Performance part developmentDesigning an intake, exhaust, or suspension component and testing it against the stock part is qualified development.
- Fitment and packagingWorking a new part into the space a vehicle allows takes measurement, trial fits, and revision. That process counts.
- Prototype fabricationBuilding a first article, finding what is wrong, and cutting the next one is the experimentation test at work.
- Dyno and track testingRuns that compare tune, part, or setup changes are experiments with a data log attached.
- Upfits and conversionsEngineering a chassis for a new body, lift, or equipment package raises structural and electrical questions that qualify.
- Tuning and calibrationDeveloping an engine or transmission calibration for a new combination is technical iteration on the record.
- Emissions and safety complianceGetting a new design through emissions or crash requirements takes design alternatives and testing. Those count.
- Tooling and fixturesDesigning jigs and fixtures to produce a new part repeatably is development work, not overhead.
Where the credit comes from
The expenses that countShop wages
The time your designers, fabricators, and technicians spend on development builds is the largest piece for most shops.
Prototype materials
Metal, composites, and components consumed in prototypes and test builds can count, including parts that later sell.
Outside testing and design
A share of what you pay U.S. test labs, tuners, and design consultants on qualified work counts too.
What does not count
Routine installs of proven parts, repairs, and cosmetic work stay out. The study draws that line honestly.
Common questions
We modify vehicles. Is that really research?
It is when the modification raises a question you cannot answer without testing. Designing a part or an upfit and proving it works is research under the statute.
The prototype became a customer's vehicle. Does it still count?
Yes. A prototype that sells is still a prototype. The materials and time that went into resolving the design can qualify.
Does a build that did not work count?
Yes. The credit rewards the attempt to resolve an unknown. A design that failed on the dyno is evidence of experimentation.
We sell parts that another shop designed. Do we qualify?
Reselling or installing finished parts does not qualify on its own. Developing, testing, or adapting a part in your own shop does.
How far back can we claim?
Up to three prior tax years, by amended return. Credits you never claimed are still there to collect.
What records do we need?
The ones you already keep. CAD files, dyno sheets, build photos, revision notes, and invoices are the evidence. The study organizes them against the test.
What happens if the return is examined?
The people who wrote the study answer for it. Audit defense is included in every study at no added cost.
Which form does the credit go on?
Form 6765, filed with the return. From there it carries onto Form 3800 as part of the general business credit. The Form 6765 guide and the Form 3800 guide walk a CPA through both.
Thirty minutes shows whether you qualify.
Book a call and bring the person who knows the work. We will cover whether your projects qualify and what a credit could be worth.
Book a call Or write to inquiries@thefoundryfirm.com