Why engineering firms qualify
The four-part testNew designs count as R&D
A design only has to be new to your firm to count. It does not need to be new to the profession.
Every project has unknowns
Will the system carry the load on that site? Solving questions like that is qualified work.
Iteration is experimentation
Analysis runs, alternatives, and revised drawings satisfy the experimentation test. Your normal workflow is the evidence.
The science is already there
Your designs rest on engineering and math. For engineering firms, 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- Structural system designSelecting and sizing a system for a specific building and site is qualified evaluation.
- Site and civil designGrading, drainage, and stormwater solutions for a difficult site take alternatives and analysis that count.
- Mechanical and electrical designDesigning HVAC, plumbing, and power systems to meet performance targets is development work.
- Analysis and modelingFinite element, energy, and hydraulic models run to make a design work are experimentation with a paper trail.
- Foundation designPoor soils, high water, and existing structures force design alternatives. That process qualifies.
- Retrofit and adaptive reuseMaking an existing structure carry a new use raises questions only analysis can answer.
- Code-constrained redesignMaking the design intent survive a hard code constraint takes technical iteration. The iterations count.
- Construction-phase resolutionAnswering an RFI with a redesigned detail is documented problem solving.
Where the credit comes from
The expenses that countDesign wages
The time your engineers, designers, and drafters spend on qualified projects is the largest piece for most firms.
Outside consultants
A share of what you pay U.S. specialty consultants and testing firms on qualified work counts toward the credit.
Supplies and computing
Materials consumed in design development, and cloud computing used for analysis, can count as well.
What does not count
Construction administration, inspections, and routine production work stay out. The study draws that line honestly.
Common questions
Does the design have to be novel?
No. The work has to be new to your firm, not to the profession. A structure or system you have not solved before is enough.
We stamp drawings on standard buildings. Do we qualify?
Repeat designs from a template rarely do. Projects where the site, the loads, or the program forced a new solution qualify.
Our contracts are hourly. Does that matter?
Hourly and fixed-fee contracts can both support a claim. What matters is whether your firm carried the technical risk and kept the right to reuse what it learned. The study reviews the terms.
Do project managers' hours count?
Yes, for the time they spend directing or supporting qualified design 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. Calculations, models, drawing sets, RFIs, and time records 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