Baker Tilly Launches End-to-End Compliance Solution for Prevailing Wage & Apprenticeship Requirements in the Inflation Reduction Act

New IRA PW&A compliance portal streamlines payroll and apprentice tracking, aiding clean energy projects.

CHICAGO (March 4, 2024) – Leading advisory CPA firm Baker Tilly US, LLP (Baker Tilly) today 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 organizations 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 maximizing their tax credits.

The IRA stands as the largest energy incentive effort in U.S. history. Taxable and tax-exempt organizations 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 organizations seeking IRA tax credits.

“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,” said Tom Unke, Baker Tilly partner and practice leader for energy, industrial and consumer products. “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.”

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. "We are excited to collaborate with Baker Tilly in revolutionizing the compliance landscape for clean energy projects,” said Amanda Hesse, Chief Revenue Officer at LCPtracker. “Together, we’re empowering organizations to efficiently navigate the prevailing wage and apprenticeship requirements of IRA, while reducing risk."