UWEC Foundation secures IRA tax credits and creates risk management framework to support campus and community revitalization

Client background

The University of Wisconsin–Eau Claire (UWEC) Foundation is a not-for-profit organization dedicated to supporting the University of Wisconsin–Eau Claire campus and community. Founded in 1958, the Foundation's primary mission is to raise and manage private funds to benefit the university, its students, faculty and programs. The Foundation works to secure gifts to support various initiatives to enhance the educational experience at UWEC.  

The UWEC Foundation’s challenge and opportunity

The Foundation has led significant capital projects aimed to revitalize the Eau Claire community and UWEC campus, including a $60 million downtown arts center with a living/learning component and a $105 million sporting event and sports medicine research center. The Foundation entered into a public-private partnership (P3) in collaboration with the Mayo Clinic, Blugold Real Estate and the Eau Claire Community Complex, Inc. as well as the city and university to move the project (named the Sonnentag Events Center after a major donor) forward. To maximize funding for the Sonnentag Events Center, they pursued available credits under the Inflation Reduction Act (IRA) and recognized the need for careful planning, execution and management to ensure eligibility, compliance and adherence to the IRA’s timing requirements.

Baker Tilly solution

Baker Tilly served as a credits and incentives project advisor to the UWEC Foundation, leveraging our team’s significant experience in identifying, securing and ensuring compliance with a variety of tax credits and incentives. The team at Baker Tilly guided the Foundation in navigating and optimizing financial opportunities such as New Markets Tax Credits (NMTC), Inflation Reduction Act (IRA) incentives, Section 179D energy efficiency deductions and various grant programs. As construction commenced, the project team discovered opportunities for IRA energy tax credits and worked with Baker Tilly to identify eligible energy property infrastructure costs that are estimated at between $2 and $3 million in energy credits.

Beyond IRA advisory support, it was critical for UWEC Foundation leadership to assess and manage financial, legal and tax-exempt status risks related to the project. In collaboration with the Foundation, Baker Tilly created a risk management framework aligned to the broader sustainability strategy and ensured compliance with all policies and procedures throughout project development.

Results achieved

As a result of Baker Tilly's advisory services, the UWEC Foundation was able to verify eligibility, secure funding and comply with the necessary tax credit and incentive requirements, which provided substantial financial support and reduced the overall fiscal burden on the Foundation. Baker Tilly’s IRA guidance positions the Foundation for compliance with IRA regulatory requirements so that they can seek alternative funding for the renewable energy components of this current project. 

For more information, or to learn how Baker Tilly's higher education and tax credits and incentives specialists can help your institution, contact our team.