Prevailing Wage & Apprenticeship Bonus Credit Solutions
Prevailing Wage & Apprenticeship Bonus Credit Solutions
Laura Cataldo
Director
Cory R. Wendt
Principal
Joel M. Laubenstein
Principal
Gideon Gradman
Baker Tilly Capital, LLC Managing Director
Thomas E. Unke
CPA
Partner
Maximize the value of your IRA credits through compliance with prevailing wage and apprenticeship requirements.
Prevailing wage and apprenticeship (PW&A) is the most powerful bonus credit under the Inflation Reduction Act (IRA) of 2022. PW&A requires organizations to pay all skilled trade workers the prevailing wage, a combination of hourly pay and benefits, and to use qualified apprentices. Projects that comply with the prevailing wage and apprenticeship requirements are eligible for a 5x enhanced credit.
Is your organization eligible for IRA credits or have you been awarded a 48C credit? Projects that are compliant with prevailing wage and apprenticeship requirements are eligible to earn five times the base credit.
PW&A bonus credit compliance solution
Our end-to-end technology solution makes compliance for IRA prevailing wage and apprenticeship requirements simple. Our compliance portal leverages, LCPtracker, a trusted payroll tracking system, to ingest and certify payroll. Together our systems and people effectively tackle the three pillars of compliance: prevailing wage, apprenticeship and penalties. This process ensures that you comply with the stringent recordkeeping rules of the IRS throughout the duration of the credit.
Our solution substantiates compliance with prevailing wage and apprenticeship requirements and provides you with transparency on project compliance and possible penalties. Our goal is to preserve and maximize the credit while minimizing any potential penalties.
We’re with you every step of the way
The solution
- Provide interpretation of IRA guidance
- Provide templates for apprenticeship requests and supplemental wage determinations
- Identify local registered apprenticeship programs
- Deliver program training to contractors
- Custom tools for the client and program to monitor PW&A compliance
- Notify clients when trending towards noncompliance
- Generate a final deliverable for tax credit filing
The portal
- Contractors submit weekly payroll into LCPtracker and our new PW&A compliance portal
- Contractors certify prevailing wage is paid and generate a certified payroll
- “Certified payroll” ensures compliance with prevailing wage, immediately
- Apprenticeship and penalty evaluated by Baker Tilly, against certified payroll, daily
Portal resources
- Documentation of compliance for audit file
- Governance of good faith effort
- Calculation of apprentice wage
- Cataloging expected penalties
- Governance of wage determinations
PW&A FAQ
Maximizing the credit value is not easy. Contrary to what many in the construction industry think, substantiating PW&A is not simply compliance with Davis-Bacon and Related Acts prevailing wage provisions. Receiving the enhanced credit requires ongoing and prompt cure of noncompliance, payment of penalties and substantial record-keeping. Manual record keeping on Excel spreadsheets will not be enough.
Guiding insights
Streamlining Inflation Reduction Act prevailing wage and apprenticeship compliance
Explore how the Inflation Reduction Act prevailing wage and apprenticeship compliance differs from Davis-Bacon regulations, discover strategies to maximize tax credit potential and navigate compliance complexities for contractors and project owners.
How to substantiate prevailing wage and apprenticeship to earn the 5X bonus credit
Watch this on-demand recording for the latest updates on how to claim the IRA prevailing wage and apprenticeship (PW&A) bonus credit. Our industry specialists will also provide an overview of our new PW&A compliance portal.
Inflation Reduction Act proposed regulations released regarding prevailing wage and apprenticeship requirements
The Internal Revenue Service and Department of the Treasury issued proposed regulations and addressed frequently asked questions about the prevailing wage and apprenticeship under the Inflation Reduction Act
Further guidance released on qualifying advanced energy project credit allocation program
The IRS Notice 2023-44 (Notice) provides further guidance on the application for, and award of, $10 billion in Inflation Reduction Act (IRA) credits.
Bonus energy credit domestic content requirements: Preliminary IRS guidance
Notice 2023-38 provides initial guidance on how taxpayers can satisfy the domestic content requirements and qualify for one of the bonus energy credit structures under the Inflation Reduction Act.
IRA: prevailing wage and apprenticeship guidance
The IRS has issued Notice 2022-61 (Notice) which imposes guidance around several new requirements to obtain the many energy efficient tax breaks extended by the Inflation Reduction Act (IRA). Requirements to pay prevailing wages and offer apprenticeship programs do not apply for projects that have “begun construction” within 59 days of the guidance released on Nov. 30, 2022.
Contractors eligible for enhanced tax credits for energy projects, if they follow apprentice and prevailing wage rules
The real estate and construction industries are buzzing about the opportunities for enhanced Investment Tax Credits for energy-related projects as included in the Inflation Reduction Act of 2022. Here is a summary of the requirements.
