Why boat builders qualify
The four-part testSold boats count as prototypes
Each finished boat is the next iteration of the model. The credit treats it as R&D even after it sells.
Improvements raise real questions
A functional change takes engineering work to get right. Solving it is qualified work.
Iteration is experimentation
Testing one build and refining the next satisfies the experimentation test. Your shop runs on it.
The science is already there
Your improvements rest on marine 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- Hull form changesReworking a running surface, strakes, or deadrise to fix how a boat rides is qualified development.
- Lamination and layup trialsChanging schedules, resins, or coring to hit strength and weight targets is experimentation on the record.
- Propulsion integrationFitting a new engine, drive, or outboard package into an existing hull raises real engineering questions.
- Sea trialsRunning a build, finding what is wrong, and fixing it in the next one is the experimentation test at work.
- Tooling and moldsDeveloping plugs and molds for a new or revised model is development work, not overhead.
- Weight and stability reworkMoving ballast, tanks, and structure to fix trim or stability is qualified problem solving.
- Systems routingWorking out fuel, electrical, and hydraulic runs on a new model takes iteration that counts.
- Semi-custom changesA customer-driven functional change is a technical unknown to solve, hull by hull.
Where the credit comes from
The expenses that countBuild-crew wages
The time your builders, laminators, and riggers spend on development builds is the largest piece for most shops.
Materials and molds
Resin, glass, coring, and tooling consumed in development can count, including on prototypes that later sell.
Outside naval architects
A share of what you pay U.S. naval architects and engineering consultants on qualified work counts too.
What does not count
Cosmetic options, routine production of a settled model, and warranty work stay out. The study draws that line honestly.
Common questions
The boat sold. Does it still count?
Yes. A development build is a prototype in the credit's eyes even when a customer takes delivery. The sale does not undo the R&D.
We build semi-custom, not new models. Do we qualify?
Often. Functional changes made hull by hull can qualify. Purely cosmetic choices, like color and upholstery, do not.
We do not keep engineering records. Is that a problem?
You keep more than you think. Build sheets, layup schedules, and sea trial notes are evidence. The study organizes them against the test.
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 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 builds qualify and what a credit could be worth.
Book a call Or write to inquiries@thefoundryfirm.com