Fewer than 3 in 10 businesses that qualify actually claim the R&D tax credit (U.S. Chamber of Commerce).

Most miss out because of confusion about eligibility and the perceived complexity of filing.

R&D at Engineering Firms happens anytime a team tests a new design, evaluates a system, or develops a process to make structures safer, stronger, and more efficient.

If your firm is experimenting with materials, modeling performance, or developing new systems, you may already be performing Qualified Research Activities (QRAs) under the IRS definition.

At SPRX, we help engineering firms understand which activities qualify for the R&D tax credit and why. Read this guide to get a clear understanding of the qualified research activities (QRAs) that could apply to your work.

Types of Engineering Firms that Qualify

• Bridge Design

• Civil Engineering

• Structural Engineering

• Landscape Architecture and Design

• Mechanical, Electrical, Plumbing (MEP) Engineering

• Plant Design & Engineering

• Product Engineering

• Process Engineering

• Water Engineering

• Waste Management Engineering

What Counts as Qualified Research Activities at an Engineering Firm

If your firm is doing any of these activities, you qualify for the R&D credit:

Design and Modeling

• Exploring construction means, methods, and technical design approaches

• Preparing structural and facility designs for constructability

• Using Building Information Modeling (BIM) for coordination and subsystem integration

• Conducting value engineering to optimize cost, performance, and feasibility

• Developing alternative structural designs to improve safety and efficiency

Systems and Equipment Development

• Designing HVAC, electrical, and plumbing systems to improve performance and efficiency

• Developing or improving lighting, heating, cooling, and ventilation systems

• Creating or refining processes and equipment for material extraction, conversion, or handling

• Developing or improving construction tools and equipment to enhance productivity

• Integrating material and product transportation systems into building designs

Sustainability and Environmental Performance

• Designing LEED and green building initiatives for energy efficiency and environmental compliance

• Ensuring waste management and disposal systems are effectively integrated into structures

• Developing pilot systems or plants to validate sustainable design concepts

Testing and Validation

• Conducting voltage drop and conduit overheating calculations

• Measuring and testing electrical conduit specifications and wire performance

• Performing system design validation, stress testing, and performance analysis

Each of these activities aligns with the IRS Four-Part Test for Qualified Research.

The IRS Four-Part Test

Each of these activities meets the IRS four-part test (Section 174) for Qualified Research:

• Purpose: Improving a product, process, or method

• Technology: Grounded in agricultural or engineering principles

• Uncertainty: Testing to find what performs best

• Experimentation: Measuring, comparing, and refining results

Why Engineering Work Qualifies as R&D

Every engineering project involves problem-solving. Whether you are designing electrical systems, testing airflow, or optimizing structural layouts, your work follows a process of experimentation to eliminate uncertainty. That process is what the IRS defines as research and development.

SPRX captures and documents these efforts precisely. We identify which activities meet IRS criteria, connect them to the underlying technical principles, and provide audit-ready support to defend every credit.

The Takeaway for Engineering Firms

Innovation in engineering is built on iteration. Every adjustment, every test, every model is a deliberate step toward better performance.

SPRX ensures that work is recognized as research and development. We turn technical progress into measurable financial impact with clarity, precision, and confidence.

Get in touch if you want help claiming your R&D credit.

Learn more about the R&D Credit

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