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."

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 maximizing credit value while minimizing potential incurred penalties. The platform includes project-specific dashboards, summarizing 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.

Learn more about Baker Tilly’s prevailing wage and apprenticeship compliance management solution: bakertilly.com/specialties/prevailing-wage-and-apprenticeship-bonus-credit-solutions.

About Baker Tilly US, LLP (bakertilly.com)

Baker Tilly US, LLP (Baker Tilly) is a leading advisory CPA firm, providing clients with a genuine coast-to-coast and global advantage in major regions of the U.S. and in many of the world’s leading financial centers – New York, London, San Francisco, Los Angeles, Chicago and Boston. Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 141 territories, with 43,000 professionals and a combined worldwide revenue of $5.2 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Instagram.

About LCPtracker, Inc

LCPtracker is a leading software solutions provider that helps project owners and construction companies navigate the complexities of Davis-Bacon and prevailing wage compliance on publicly funded construction projects. Our cloud-based solutions allow for the electronic management and tracking of certified payroll, construction site compliance, and workforce demographics. We help government agencies, project owners, and contractors achieve their labor compliance goals, facilitate the enforcement of prevailing wages, and support workers in carving a path towards a brighter and more sustainable future. Headquartered in Orange, California, LCPtracker is a privately held company. Visit their website at lcptracker.com.