COR2409. IRA Energy Credits - Opportunities and challenges for credit seekers and contractors

IRA Energy Credit - Opportunities and Challenges for Contractors

The Inflation Reduction Act (IRA) created game-changing opportunities for many projects to capitalize on the largest energy investment in US history through tax credits. Complying with prevailing wage & apprenticeship (PW&A) under IRA can significantly enhance credit value by 5x and therefore many project owners are asking contractors to comply. It took nearly two years for the prevailing wage & apprenticeship requirement final rule - leaving many contractors in a state of flux as project owners are pushing penalties and/or loss of credit to contractors. Yet, this is also a perfect opportunity to take advantage of the $270B of tax credits and incentives in the longest running US energy policy.

Unfortunately, being 'in accordance with' Davis-Bacon but not a covered act, has created significant confusion for both credit seekers and contractors. This is tax credit compliance for the IRS and there are record-keeping requirements for an extended period of time. Baker Tilly will review fundamentals of the IRA base and adder credits, including domestic content, energy community and prevailing wage. This session will review the final PWA rule, explain recordkeeping and provide recommendations on how contractors can help their projects comply.

Learning Objectives:

• Participants will learn about the significance of the IRA in creating opportunities for energy projects through tax credits.
• Understand the compliance requirements of the IRA prevailing wage and apprenticeship (PWA) requirement final rule.
• Review the IRS’s record-keeping requirements related to tax credit compliance and maintaining records to defend under IRS audit.