Prevailing Wage & Apprenticeship Bonus Credit Solutions
Director
Principal
Principal
Baker Tilly Capital, LLC Managing Director
CPA
Partner
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.
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.
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.