Navigate clean energy tax credits and deductions with confidence.
Investors in clean energy have a lot to consider. Whether for yourself or your business, the Inflation Reduction Act of 2022 (IRA) provides guidance for credits and deductions that can be challenging to work through. Our team can help you:
- Identify qualifying clean energy credit or deduction opportunities
- Comply with prevailing wage and apprenticeship (PWA) requirements, avoiding penalties and efficiently obtaining necessary data
- Explore “bonus credit” opportunities within the IRA
- Navigate elective payment or credit transfer transactions
- Calculate credits and prepare tax forms (including energy property cost basis calculation)
- Model credit deals
Empower your clean energy initiatives with this four-phased approach driven by our IRA consulting team.
| Discovery | Modeling | Implementation | Claim |
|---|---|---|---|
| Evaluate your eligibility for potential credits and deductions. Based on the project’s specifications, we can provide a listing of potentially eligible credits, estimated credit amount, and available bonus credit opportunities. | Model the potential economic benefits and costs of clean energy credits. Whether identifying which credit to pursue, weighing entity structure benefits, or choosing between transfer credits or elect direct pay, the modeling process can help you understand your projects’ internal rate of return. | PWA requirements could result in an available credit at five times the otherwise eligible base credit amount. This phase can help you plan for and track compliance, while defending your PWA bonus credit by accumulating and analyzing the requisite labor information for your project. | Leverage our insight when claiming your IRA credits and transferring or electing direct pay. We can help you review contracts, pre-register with the IRS, or include requisite tax return disclosures. Our team offers guidance on how to report the credits on needed tax return forms and schedules, so you can use your available credits. |
IRA Prevailing Wage & Apprenticeship
In some instances, meeting PWA requirements allows your company to multiply its clean energy credit by five, making it one of the most impactful IRA bonus credits. PWA was implemented to encourage higher payment of laborers and the inclusion of qualified apprentices in clean energy construction. Our full-scope service includes a variety of phases powered by our PWA Navigator. Our team can help you:
Analyze potential process improvements:
Sound processes can help gather needed information for PWA requirements. Processes include payroll, work and time tracking, apprenticeship requests, and apprentice participation monitoring, among others.
Track activity:
Tracking activity during construction allows taxpayers to gather data points needed for documentation and compliance.
Identify the need for correction payments:
We can alert you to PWA compliance errors as they’re made, helping avoid penalties and interest.
Comply with documentation and reporting standards:
We can help you complete requisite forms and compile a documentation package for use in a related future IRS exam.
Our team eases the burden of navigating PWA complexities, providing a timely opportunity to avoid penalties and interest.
TaxCred PROTM for Clean Energy
The IRA includes numerous clean energy tax provisions, each with nuances that affect your eligibility and potential benefits. Instead of spending extensive time researching the intricacies of the IRA, let TaxCred PRO for Clean Energy help.
TaxCred PRO walks you through IRA discovery with a user-friendly questionnaire, collecting details about your clean energy initiatives and investments. Once complete, TaxCred PRO delivers a customized educational report outlining relevant tax credits and deductions, including a range of potential benefits according to the answers you’ve submitted.
Other Clean Energy Consulting Services
Credit Transfer or Elective Pay
Entities in a loss position—or entities with owners in a loss position—may now sell (or “transfer”) eligible clean energy credits for cash.
Certain nonprofit entities can elect to receive cash in lieu of an income tax credit.
Both options require registration with the IRS, along with specific filings and considerations. Note: Forvis Mazars does not provide brokerage services for clean energy credits.
“Bonus Credit” Consulting
The IRA provides additional bonus credits beyond the PWA. The Domestic Content, Energy Community, and Low-Income Communities bonus credits may be opportunities for your business. Whether you need qualification analysis, data gathering, or reporting, our team can help.
Credit Modeling
Clean energy projects may warrant modeling to analyze entity structures and deal terms. Our credit modeling services include financing analysis, gain projections, and depreciation allocations, helping provide value to project owners and investors alike.
