Leading advisory CPA firm Baker Tilly US has announced the launch of an end-to-end compliance solution to help clean energy projects earn enhanced credits under the Inflation Reduction Act (IRA) by meeting Prevailing Wage & Apprenticeship (PW&A) requirements.

The new solution provides organisations implementing clean energy projects with the technology, processes, and resources to establish, monitor and document all three pillars of compliance: prevailing wage, apprenticeship and penalties. Unlike traditional sampling methods, this tool offers complete data-set coverage, providing tax compliance professionals with an unparalleled level of care aimed at protecting and maximising their tax credits.

The IRA stands as the largest energy incentive effort in U.S. history. Taxable and tax-exempt organisations can receive tax credit benefits for implementing clean energy solutions, and projects that comply with PW&A are eligible for a 5x enhanced credit through section 45 and 48 of the IRA. Baker Tilly’s new comprehensive solution offers support and oversight for eligible organisations seeking IRA tax credits.

Commenting on this, Baker Tilly partner and practice leader for energy, Tom Unke, said: “Managers of clean energy projects are either unaware of the IRA PW&A incentive or struggling to access and leverage the credits that could save them millions of dollars because of the complicated regulatory requirements. It’s a substantive, complex tax compliance process that can’t be written off as a ‘check the box’ formality.

“Baker Tilly brings unmatched assurance of IRA PW&A incentives. We developed this end-to-end technology solution to make compliance as straightforward and effortless as possible.”

Baker Tilly principal, Cory Wendt, added: “It is widely misunderstood that these new requirements are similar to other federal rules such as Davis-Bacon and related acts. IRA requirements have specific features that are not incorporated into Davis-Bacon prevailing wage projects.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Baker Tilly’s new IRA PW&A compliance portal leverages trusted cloud-based prevailing wage management system LCPtracker to electronically capture and track payroll information. After a series of validation and mathematical checks to review the data, the system certifies the payroll. Baker Tilly then uses its proprietary application to conduct all compliance testing, recordkeeping, reviews, and communications through an analytic interface.

LCPtracker chief revenue officer, Amanda Hesse, further said: “We are excited to collaborate with Baker Tilly in revolutionising the compliance landscape for clean energy projects.

“Together, we’re empowering organisations to efficiently navigate the prevailing wage and apprenticeship requirements of IRA, while reducing risk.”

With this collaboration, Baker Tilly simplifies the complexity of validating payroll records for compliance on IRA projects. The solution provides transparency on PW&A adherence for contractors and tax owners, with the goal of preserving and maximising credit value while minimising potential incurred penalties.

The platform includes project-specific dashboards, summarising weekly contractor prevailing wage and apprenticeship performance, that update tax credit seekers on project compliance and projected penalties. Monthly reports on prevailing wage and apprenticeship compliance are generated for each project and retained for reporting and filing purposes. Additionally, documentation is created when contractors cure noncompliance events, which serves as substantiation of the credit filing.

The solution includes:

  • Facilitating a compliance program with general contractors, contractors, and subcontractors.
  • Monitoring the overall project compliance and supporting contractors through education and resources to adhere to requirements.
  • Reviewing and curing contractor noncompliance, which can result in project penalties for the credit seeker at time of filing.
  • Establishing and maintaining apprentice hours, overall budget, and contractor-specific targets.