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The bottom line is that if you are changing how a system works, the basic structural integrity, or the certified operational characteristics of the aircraft, you are making a major alteration. If not, its generally a minor alteration.
FAR 1 defines a Major repair as a repair that if improperly done, might appreciably affect weight, balance, structural strength, performance, powerplant operation, flight characteristics, or other qualities affecting airworthiness; or that is not done ing to accepted practices or cannot be done by elementary
(2) Data used as a basis for approving major repairs or alterations for return to service must be FAA-approved prior to its use for that purpose and includes: FAR (e.g., airworthiness directives), ACs (e.g., AC 43.13-1A under certain circumstances), TSOs parts manufacturing approval (PMA), FAA- approved
A major change in type design can be approved only by an ACO or an ODA holder with Supplemental Type Certificate (STC) or type certificate (TC) authorization. A major alteration requires the use of FAA-approved technical data. Minor alterations only require data that is acceptable to the FAA.
The person who performs or supervises a major repair or major alteration must prepare FAA Form 337. The form is executed at least in duplicate and is used to record major repairs and major alterations made to an aircraft, airframe, powerplant, propeller, appliance, or a component part thereof.
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FAR 1 defines a major alteration as an alteration not listed in the aircraft, aircraft engine, or propeller specifications that might appreciably affect weight, balance, structural strength, performance, power plant operation, flight characteristics, or other qualities affecting airworthiness or that is not done
If the alteration is minor, the approval can be done by any licensed AP mechanic. However, if the alteration is deemed to be major, it requires a mechanic with an Inspection Authorization (IA), in order to sign the approval block on the 337 form and submit it to the FAA.

337 form example