Structural engineering firms — companies that design structural systems for buildings, bridges, and other structures — may perform activities that warrant analysis under the federal R&D tax credit. This page explains what development work may be relevant. It is educational and is not individualized advice. For the foundational framework, see our page on qualified research.
What R&D May Look Like in Structural Engineering
Structural engineering involves structural system development, materials, connection design, seismic and performance targets, and analysis methods. Work directed at resolving genuine technical uncertainty in these areas may warrant review. Routine structural design and standard practice do not, by themselves, constitute qualified research.
Industry-Specific Examples of Technical Development
- Developing structural systems to achieve a specified performance, cost, or constructability target where the appropriate design is uncertain.
- Testing alternative materials or assemblies to meet a structural or performance target where the capability is uncertain.
- Developing connection or joint designs to meet a specified target where the appropriate design is uncertain.
- Developing seismic or performance-based design approaches to achieve a specified target where the appropriate method is uncertain.
- Developing analysis or modeling methods to evaluate structural performance where the appropriate approach is uncertain.
- Developing approaches for unusual or complex structures where the appropriate method is uncertain.
Technical Uncertainty Examples
- Whether an alternative structural system can achieve a specified performance target for a specific building.
- Whether a new connection design can meet a specified strength and performance target.
- Whether a modified analysis method can accurately predict structural performance for a complex structure.
Process-of-Experimentation Examples
A process of experimentation may involve modeling or simulating alternative structural systems and measuring performance, testing alternative connections or materials and evaluating results, or comparing alternative analysis methods against known results.
Potential Business Components
Potential business components may include a new or improved structural system, a new or improved connection or joint design, a new or improved seismic or performance-based approach, or a new or improved analysis method.
Employee and Contractor Work
Employees whose work may warrant analysis include structural engineers, design engineers, materials engineers, and analysis specialists. Contractor work may include outside testing laboratories or consultants performing development work on behalf of the firm.
Activities That Generally Require Caution or May Not Qualify
- Routine structural design following established methods and codes.
- Standard sizing and selection using established methods.
- Ordinary coordination and project management.
- Simple material selections without a technical development question.
- Routine analysis using established methods.
Documentation That May Help
Records that may help include structural system development records, modeling or simulation results, connection or material test data, and records connecting personnel to specific development projects.
Example Hypothetical Project
The following is a hypothetical example for illustration only.
A structural engineering firm is developing a structural system for a building with unusual geometry intended to achieve a specified performance target under seismic loading. The technical uncertainty is whether an alternative combination of structural system, connections, and materials can achieve the specified target. The team models alternative designs, tests connections, and evaluates performance. Professional review is still needed.
Questions to Ask Internally
- What specific system, connection, or method was being developed or improved?
- What technical uncertainty existed at the outset?
- How does this differ from routine structural design?
Relationship to the Four-Part Test
The four-part test applies the same way as in any industry. The work must satisfy all four elements: permitted purpose, technological in nature, elimination of uncertainty, and process of experimentation.
Key Takeaway
Structural engineering firms may perform activities that warrant analysis under IRC §41 — particularly work involving structural systems, materials, connections, and analysis methods. Routine structural design does not automatically qualify. Because these determinations are fact-specific, professional review is appropriate. For related industries, see architecture firms and civil engineering firms.