Why contractors qualify
The four-part testNew methods count as R&D
A method or assembly only has to be new to your company to count. It does not need to be new to the industry.
Every hard job has unknowns
How do you build it on that site, to that spec? Answering that is qualified work.
Mockups are experimentation
Means and methods studies, mockups, and revised details satisfy the experimentation test. Your normal workflow is the evidence.
The science is already there
Your solutions rest on engineering and physics. For contractors, the science test is the easy part.
A short study shows which of your projects qualify, and proves it. Read the four-part test in the words of the statute.
What qualifies in practice
Work you already bill for- Design-build and design-assistDeveloping the design, or resolving it with the architect, is design work your company does. It qualifies.
- Means and methodsWorking out how to build an unusual structure, sequence, or site condition takes alternatives and testing. That counts.
- Constructability reviewFinding a detail that will not build and redesigning it with the team is documented problem solving.
- Temporary worksDesigning shoring, formwork, rigging, and crane plans for a specific job is engineering on the record.
- BIM coordinationClash detection and the redesign that follows are technical iteration that qualifies.
- PrefabricationDeveloping a way to build an assembly off site and install it once is process development.
- Material and system testingMockups, load tests, and water tests on a new assembly are experimentation with a paper trail.
- Value engineeringProposing an alternative system and proving it performs is qualified evaluation.
Where the credit comes from
The expenses that countProject wages
The time your project managers, superintendents, and estimators spend on qualified problem solving is the largest piece for most contractors.
Outside design and engineering
A share of what you pay U.S. design and engineering consultants on qualified work counts toward the credit.
Mockups and testing
Materials consumed in mockups, load tests, and trial assemblies can count as supplies.
What does not count
Routine work from finished drawings, labor on settled methods, and land or equipment stay out. The study draws that line honestly.
Common questions
We build from someone else's drawings. Do we qualify?
Plan-and-spec work qualifies less often, but the questions the drawings leave open, from sequencing to temporary works, are yours to solve. Design-build and design-assist qualify more readily.
Our jobs are fixed price. Does that help or hurt?
Fixed-price contracts generally support a claim, because your company carries the risk if the method fails. Cost-plus contracts need a closer look.
Does the credit apply to the whole job?
No. It applies to the part of the job spent resolving technical questions. The study separates that from routine production.
Do superintendents' hours count?
Yes, for the time they spend working out how to build something, and for the time spent supervising or supporting that work.
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. RFIs, submittals, mockup photos, BIM models, schedules, 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