Why fabricators qualify
The four-part testCustom work counts as R&D
A design or method only has to be new to your shop to count. It does not need to be new to the trade.
Every custom job has unknowns
Will it hold the load and stay flat? Answering that is qualified work.
Test pieces are experimentation
Weld trials, mockups, and revised shop drawings satisfy the experimentation test. Your normal workflow is the evidence.
The science is already there
Your work rests on metallurgy and mechanics. For fabricators, 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 your shop already does- Shop drawing developmentTurning a customer's concept into buildable details takes alternatives and revisions. That process qualifies.
- Weld procedure developmentDeveloping and testing a procedure for a new material, thickness, or joint is experimentation on the record.
- Distortion controlWorking out sequence, fixturing, and heat input to keep a weldment flat is qualified problem solving.
- Custom tooling and fixturesDesigning jigs, dies, and forming tools for a new part is development work, not overhead.
- Prototype and first articleBuilding a first piece, finding what fails, and revising the design is the experimentation test at work.
- Forming and bending trialsTrialing bend sequences, tooling, and material to hit a geometry is technical iteration.
- Structural and load-bearing designSizing members and connections for a custom frame, platform, or enclosure is qualified engineering.
- Process improvementBringing a part onto a laser, press brake, or robot cell and proving it out counts.
Where the credit comes from
The expenses that countShop wages
The time your detailers, welders, and fabricators spend on qualified jobs is the largest piece for most shops.
Test material
Plate, tube, consumables, and tooling consumed in trials and prototypes can count as supplies.
Outside engineering and testing
A share of what you pay U.S. engineering consultants, inspectors, and test labs on qualified work counts too.
What does not count
Repeat production of a proven part, repairs, and equipment purchases stay out. The study draws that line honestly.
Common questions
We fabricate to the customer's drawings. Is that research?
The drawings say what to build. Working out how to weld it, form it, and keep it in tolerance is the research your shop does.
Do test coupons and scrapped pieces count?
Yes. Material consumed proving out a procedure or a first article is evidence of experimentation, and it can count as a supply.
Does repair work qualify?
Routine repair does not. Designing a repair method for a problem the standard fix does not solve can.
We are a small shop with no engineering staff. Do we qualify?
Yes. The credit follows the activity, not the title. A fabricator developing a procedure is doing qualified 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. Shop drawings, weld procedure records, inspection reports, fixture designs, 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