THIRD-PARTY LABOR COMPLIANCE MONITORINGYour clean energy tax credit depends on getting this right.
Projects claiming increased credits or deductions under the Inflation Reduction Act must meet strict prevailing wage and apprenticeship requirements. Get it wrong, and the credit drops fast, sometimes to a fraction of its value.
We monitor certified payroll, wage rates, and apprentice labor hours on IRA-covered construction, so your project stays compliant from groundbreaking through final inspection.
30+ years
MONITORING PUBLIC WORKS50 states
COVERAGEFederal & State
DUAL JURISDICTIONWhich projects this applies to
The Inflation Reduction Act added prevailing wage and apprenticeship requirements to nine clean energy tax credits and one deduction, including sections 45, 45Q, 45V, 45Y, 45Z, 48, 48E, 179D, and 30C of the Internal Revenue Code. If your project claims one of these increased credit amounts, and construction begins on or after the applicable guidance date, these rules apply.
Final IRS regulations took effect August 26, 2024. Projects that began construction earlier may fall under transition rules, worth confirming case by case.The two requirements
Prevailing Wage
Every laborer and mechanic on the project, whether employed by you, a contractor, or a subcontractor, must be paid at or above the applicable prevailing wage rate for their classification and location, for the full construction, alteration, and repair period.
Registered Apprenticeship
A minimum share of total labor hours, generally 12.5% to 15% depending on when construction began, must be performed by apprentices from a registered apprenticeship program. There are also ratio and participation requirements tied to journeymen staffing.
What happens if you miss it
Underpaying a worker triggers a required correction payment plus interest, and a per-worker, per-year penalty that increases if the failure is found to be intentional. Apprenticeship shortfalls have their own cure path, including a good faith effort exception if you documented a request to a registered program and none was available.
Penalties can be waived where the work was performed under a qualifying project labor agreement and the correction payment is made before the credit is claimed. This is exactly the kind of detail that's easy to miss without ongoing monitoring.
We monitor it so you don’t have to guess
We review certified payroll, verify apprentice hours and ratios, track wage determinations, and flag issues before they become penalties, not after. If a correction is needed, we help you fix it before it costs you the credit.