Prevailing Wage & Apprenticeship Bonus Credit Solutions

  1. Cory Wendt

    Cory R. Wendt

    Principal

  2. Gideon Gradman

    Gideon Gradman

    Baker Tilly Capital, LLC Managing Director

  3. Tom Unke

    Thomas E. Unke

    CPA

    Principal

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.

Learn more about PW&A

Dive into the solution

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.

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Inflation Reduction Act

The IRA includes the largest clean energy incentive effort in U.S. history. Find out how your organization can leverage IRA tax credits to save as much as 50% or more on qualifying project costs.