Organizations investing in construction of clean energy projects that leverage apprenticeship programs and pay their laborers a prevailing wage have unprecedented opportunity to substantially offset construction and project costs through tax credits and incentives provided by the Inflation Reduction Act.

Confirming and demonstrating all laborers employed on a project—whether by your organization, a contractor, or subcontractor—meet the prevailing wage and apprenticeship requirements, however, can bring significant management and documentation burdens.

Secure tax savings for your projects with guidance from our professionals helping to assess your eligibility, qualify claims, and manage the complex compliance requirements—so you can maintain focus on project execution and productivity.

How to Leverage Savings Opportunities

If your project meets prevailing wage and apprenticeship requirements, you could qualify for an increased tax credit or deduction five times greater than the base rate offered for noncompliant projects. For eligible investment tax credits, that’s an increase to 30% from 6%, on the cost to construct the clean energy project, with similar increases for eligible clean energy production credits or energy improvement deductions.

Support to Navigate and Maintain Compliance

Documenting prevailing wage and apprenticeship compliance requires tracking down, analyzing, and organizing a substantial volume of information and could result in potential penalties should gaps be identified.

Taking a proactive approach before project contracts are established and construction begins can provide a strong foundation for your claims—allowing you to incorporate contractual obligations with contractors and subcontractors to not only comply with prevailing wage and apprentice requirements but establish processes for tracking, reporting, and documenting their compliance to support your increased credit claim.

Monitoring for compliance during construction and promptly correcting any errors may also qualify your project for waiver of some or even all related penalties under the current proposed rules. A combination of proactive planning and active monitoring will help you retain the biggest net value of the enhanced credit.

How the Process Works

Our professionals provide end-to-end support throughout active construction of your project and the claims process:

• Set Up. Identify scope of project and provide customized, automated analytic tools to assess and organize data throughout project.  
• Onboarding. Provide training to contractors and subcontractors on prevailing wage and apprenticeship requirements and recommended practices for reporting and documentation to establish foundation for project success.
• Contract Compliance. Review contractor and subcontractor records for accuracy and completeness.
• PWA Compliance. Review of contract and subcontractor reporting and documentation for compliance with PWA requirements utilizing our analytical software.
• Documentation. Compile final report and support documentation.
• Recapture Services. Provide ongoing support during the recapture period.

Expansive Construction, Energy, and Tax Experience

Deeply immersed within the renewable energy and construction industries, our professionals have extensive insights to help navigate the nuanced challenges that can accompany environmental-focused construction projects.

Our collaborative approach takes the time to understand the specifics of your business needs and strategically develop unique solutions contextualized among greater industry trends and activity.

We have significant experience guiding organizations to successfully claim tax credits and incentives and mitigate associated risks. Our tax professionals work closely with developers, state and federal tax credit syndicators, financial institutions, insurance companies, and corporations buying and selling credits. We help clients navigate all stages of the credit buying and selling process—from identifying tax credit opportunities to assisting with the due diligence, certification, and monetization process—to provide options that fit your tax goals and other long-term business initiatives.

Our one-firm approach also allows your organization to tap into the full resources of our firm. We integrate guidance related to integral support areas to pursue credits, incentives, and other opportunities including tax; transactions; environmental, social, and governance (ESG); and other services.

Social responsibility, environmental stewardship, and other initiatives intrinsic to the Inflation Reduction Act are core to Moss Adams values and business practices—and drive how we engage our clients, people, and the communities in which we live and work.