If your firm solves technical problems, evaluating structural, mechanical, electrical, or civil design alternatives under real uncertainty, a meaningful share of that work likely qualifies. Most engineering firms leave the credit on the table.
Request a Complimentary AssessmentEngineering firms resolve technical uncertainty every day: whether a design will perform, which system or material is right, how to meet a hard constraint. That is precisely what the credit rewards. Yet many firms assume it’s only for products or laboratories, and never claim what they’ve earned.
Evaluating alternative framing systems to meet load and cost constraints on an atypical structure.
Modeling HVAC and electrical alternatives to hit energy targets in a complex building.
Engineering a foundation solution for poor soils where standard approaches wouldn’t hold.
For firms doing client work, whether a project qualifies often turns on who bears the financial risk and who retains rights. If your payment is contingent on results and your firm keeps rights to the solution it develops, the work is more likely to qualify. If the client bears the risk and owns the results, it may be “funded research” and excluded.
A new or improved design, system, or method, better performance, reliability, or efficiency.
Grounded in engineering principles, structural, mechanical, electrical, civil, or thermal.
It was uncertain whether the design would perform, or which approach was right.
Resolved through analysis, modeling, simulation, and evaluating alternatives.
Engineering services routinely qualify when the work resolves genuine technical uncertainty. The credit is not limited to manufacturers.
It depends on the contract, specifically who bears financial risk and who retains rights. We review your agreements to draw the line correctly.
Routine drafting generally doesn’t qualify, but modeling and analysis performed to resolve design uncertainty often does. We separate the two.
This page is general information, not tax or legal advice. Whether specific activities and expenses qualify depends on the taxpayer’s facts and applicable law, and is determined through the appropriate R&D study. Novaric does not guarantee eligibility, credit amounts, or any IRS outcome.