Why millwork shops qualify
The four-part testCustom work counts as R&D
A design or joinery method only has to be new to your shop to count. It does not need to be new to the trade.
Every job has unknowns
Will the veneer hold on that radius? Solving questions like that is qualified work.
Mockups are experimentation
Samples, mockups, and revised shop drawings satisfy the experimentation test. Your normal workflow is the evidence.
The science is already there
Your work rests on wood science and geometry. For millwork shops, the science test is the easy part.
A short study shows which of your jobs qualify, and proves it. Read the four-part test in the words of the statute.
What qualifies in practice
Work you already bill for- Shop drawing developmentResolving an architect's intent into buildable details takes alternatives and revisions. That process qualifies.
- Custom joinery and hardwareWorking out how a large door, a hidden hinge, or a moving panel will function over time is engineering, and it counts.
- Material and finish testingTrialing substrates, veneers, adhesives, or finish schedules for a demanding installation is experimentation.
- Curved and complex geometryBuilding radius casework, compound miters, or sculpted forms raises fabrication questions solved by trial.
- CNC programming and nestingDeveloping toolpaths and fixtures to cut a new part cleanly and repeatably is process development.
- Mockups and first articlesBuilding a sample, finding what fails, and revising the detail is the experimentation test at work.
- Movement and moisture controlDesigning assemblies that stay flat and tight through seasonal change is qualified problem solving.
- Installation engineeringWorking out cleats, blocking, and tolerances for a difficult site is technical iteration on the record.
Where the credit comes from
The expenses that countShop wages
The time your drafters, project managers, and bench staff spend on qualified jobs is the largest piece for most shops.
Samples and prototypes
Lumber, sheet goods, hardware, and finish consumed in mockups and first articles can count as supplies.
Outside design help
A share of what you pay U.S. drafting, CNC programming, or finishing consultants on qualified work counts too.
What does not count
Repeat production of a settled design, installation labor, and delivery stay out. The study draws that line honestly.
Common questions
We build what the architect draws. Is that research?
Usually the drawings stop short of how the piece is built. Turning design intent into a working detail is where your research happens.
Does a custom kitchen qualify?
It can, when the job raised a technical question your shop had to solve. A standard box run from a catalog does not.
Does a mockup we threw away count?
Yes. A sample that failed is evidence of experimentation. The materials and time in it can qualify.
Most of our work is fixed price. Does that matter?
Fixed-price work generally supports a claim, because your shop carries the risk of getting the detail right. The study reviews the contract terms.
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. Shop drawings, revision sets, CNC files, sample photos, and job costing 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