Why molders qualify
The four-part testNew molds count as R&D
A mold or process only has to be new to your company to count. It does not need to be new to the industry.
Every new part has unknowns
Will it fill, and will it hold tolerance at cycle? Answering that is qualified work.
Sampling is experimentation
Mold trials, process windows, and revised tooling satisfy the experimentation test. Your sampling reports are the evidence.
The science is already there
Your work rests on polymer science and mechanical engineering. For molders, the science test is the easy part.
A short study shows which of your programs qualify, and proves it. Read the four-part test in the words of the statute.
What qualifies in practice
Work your plant already does- Mold design and buildDesigning gates, runners, cooling, and ejection for a new part is qualified development.
- Mold flow analysisSimulating fill, pack, and warp before cutting steel is experimentation with a paper trail.
- Sampling and process developmentEstablishing a process window through trial shots is the experimentation test at work.
- Material selectionTrialing resins, fillers, and colorants to meet a spec is technical iteration on the record.
- Part design assistanceReworking a customer's geometry for moldability is design work your company does.
- Tooling revisionsSteel-safe changes, texture trials, and revised cooling after sampling count.
- Secondary operationsDeveloping overmolding, insert molding, or assembly for a new program raises questions solved by trial.
- Process improvementCutting cycle time or scrap on a running tool through trial changes is qualified process work.
Where the credit comes from
The expenses that countDesign and production wages
The time your mold designers, process technicians, and quality staff spend on new programs is the largest piece for most companies.
Trial material and tooling
Resin, inserts, and tooling components consumed in sampling and prototypes can count as supplies.
Outside mold makers
A share of what you pay U.S. mold builders, simulation services, and test labs on qualified work counts too.
What does not count
Routine production of a qualified part, molding machine purchases, and shipping stay out. The study draws that line honestly.
Common questions
The customer owns the mold. Do we still qualify?
Often. The process work to make a part run well is yours, and design help you give the customer counts when your company carries the risk. The study reviews the contract.
Do sampling shots and scrap count?
Yes. Material consumed establishing a process window is evidence of experimentation, and it can count as a supply.
Does the credit cover a new press?
No. Equipment is depreciated, not expensed as research. The time and material spent proving out a program on it can count.
We are a small custom molder. Are we too small?
No. The credit has no minimum size. A small molder with a real development program qualifies on the same terms as a large one.
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. Mold designs, flow analyses, sampling reports, process sheets, 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