Explore the emerging trends in prevailing wage and apprenticeship (PWA) projects, from green energy initiatives to advanced compliance tools. Discover how SkillSmart’s InSight IQ simplifies wage calculations, certified payroll reporting, and apprenticeship tracking to ensure compliance and secure tax benefits. Stay ahead of evolving policies and workforce challenges.
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Maximize tax credits and simplify compliance for renewable energy projects with SkillSmart’s InSight IQ. Our modern, adaptable platform streamlines prevailing wage and apprenticeship tracking, automates reporting, and provides full data visibility, ensuring your projects meet evolving regulatory requirements. Empower your team with efficient, real-time compliance management designed for today’s energy landscape.
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SkillSmart is proud to announce successful completion of the SOC 2 Type II Audit, ensuring our clients benefit from top-tier data security and compliance. This achievement reaffirms our commitment to safeguarding client data with best-in-class technology and services, demonstrating our dedication to security, compliance, and community impact.
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There are a many new federal programs that provide funding or economic incentives like tax credits, grants and loans to organizations in many different industries that are vital to our economy and infrastructure.
A key requirement that must be met for many of these programs is to ensure that workers on the projects are receiving a prevailing wage. Since this is a new concept for a lot of these industries, representatives are seeking to better understand the requirements and concept of prevailing wage.
According to the U.S Department of Labor, prevailing wage is defined as the average wage paid to similarly employed workers in a specific occupation in the geographic area of intended employment. While this may be a new concept for you, it doesn’t have to be difficult to address and there are tools that can help you manage this easily and effectively.
In this month’s InSight Minute we’re going to discuss some of the many different types of programs that may be receiving this increased investment, and how to more easily manage prevailing wage, and other workforce requirements like tracking of apprentices.
As you review the various programs that may affect you, know that no matter which industry you may be in, you can reach out to SkillSmart.
Following are some of the programs and industries that may require tracking of prevailing wage and apprentices.
The CHIPS and Science Act invests $280 billion to bolster US semiconductor capacity, catalyze R&D, and create regional high-tech hubs and a bigger, more inclusive STEM workforce. In an effort to increase the amount of semi-conductors manufactured in the US to support these activites, the federal government made a significant investment in the form of grants, loans, and loan guarantees support various organizations in this important sector. Following are some of the impacted industries.
The Broadband Equity, Access, and Deployment (BEAD) Program, provides $42.45 billion to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs throughout the U.S.
The Bipartisan Infrastructure Law supports a number of policies and programs that generally include eight broad areas—clean energy projects and infrastructure; manufacturing and industrial transformation; water; buildings and schools; fairness for workers and communities; community resilience; transportation; and methane and natural gas distribution.
It includes $550 billion in new federal infrastructure funding over five years to repair, rebuild, and modernize America’s bridges, transit systems, water infrastructure, and more. While more than half of the bill’s funding is for transportation infrastructure—including surface transportation, airports, zero-emissions school buses, electric vehicle (EV) charging, ports, public transit, railways, and more—it also provides significant funding for broadband, the power grid, water infrastructure, resilience, and legacy pollution.
The Inflation Reduction Act (IRA) is an approximately $740 billion package, with nearly $400 billion earmarked for energy and climate projects, and makes several clean energy tax incentives available to organizations that satisfy certain prevailing wage and apprenticeship requirements.
There is a provision that indicated projects had to “begin construction” by January 28, 2023 in order to be exempted from the prevailing wage and apprenticeship requirements, as determined under the existing begin-construction principles. So, most projects for organizations in the following areas that may be eligible for these tax incentives must likely meet the prevailing wage and apprentice requirements.
In general, an organization that meets the prevailing wage and apprenticeship requirements will multiply the base amount of the tax incentive (credit or deduction) by five. Increased credit and deduction amounts are available for taxpayers satisfying prevailing wage and apprenticeship requirements under the following sections of the Internal Revenue Code (Code):
Increased credit amounts are available for taxpayers satisfying prevailing wage requirements under:
SkillSmart’s InSight IQ technology becomes your ally in addressing prevailing wage requirements in any and all of these programs – streamlining data collection, monitoring, and reporting. Ensure your projects not only benefit the environment but also meet compliance standards effortlessly.
Over the past two years, organizations in the energy sector have become increasingly aware of the concept of prevailing wage, which has arisen from the implementation of the Inflation Reduction Act (IRA), the Infrastructure Investment and Jobs Act (IIJA), as well as an increasing emphasis on this topic by jurisdictions and project owners. While it’s a fairly straightforward concept, many sectors within the industry are encountering it for the first time, leading to some unfamiliarity. Essentially, prevailing wage refers to the basic hourly rate of wages and benefits paid to similarly employed workers in a specific geographic area.
Now, more energy organizations are not only learning about prevailing wage but also finding themselves needing to take action. This is because certain funds, tax credits, and policies now hinge on ensuring prevailing wages are paid and that the associated information is documented and reported regularly. Traditionally, this requirement was mainly associated with construction projects, leaving many other sectors within the industry relatively untouched by such considerations.
Because prevailing wage requirements are becoming more prevalent, specifically in the energy sector, for new and existing energy operations and development projects, we will address two key points: Why meeting prevailing requirements is important; and How to effectively capture prevailing wage data, for compliance and cash flow from federal funding sources.
First, you might find yourself subject to prevailing wage requirements now, even if you haven’t encountered them before. This could happen because the project or organization you’re working with is now pursuing specific tax credits or financing that necessitates compliance. This change could apply retroactively, even to projects previously exempt. For instance, SkillSmart was brought onto a client’s EV battery manufacturing project, ongoing for nearly a year, only to find out that a recent project refinancing required all workers to meet, track, and submit prevailing wage . Working against a three week deadline, over 125 subcontractors and vendors were required to provide their prior-year information. Many initially dismissed it as an error until the project owner and general contractor clarified the situation.
Secondly, since other industry sectors have had to meet prevailing wage requirements previously, this is not a new concept, so there are tools that can help you, and you don’t have to go through this on your own. That’s where SkillSmart can provide a solution. InSight, our highly configurable and easy-to-use software platform, is at the forefront of supporting our clients and partners in driving positive change and providing solutions to help project teams use their day-to-day data to meet expectations, internally and externally. Based on conversations during the prospecting stage, our team would recommend the following things to look for and specifically ask about during a demo.
As we conclude, remember not to overlook the possibility of now being subject to prevailing wage requirements. Take the initiative to inquire with your client or project owner about any recent changes. Additionally, explore resources such as SkillSmart and tools like InSight, which can offer valuable assistance. You’re not alone in this journey; if you need guidance, reach out to us. Our team is here to help you navigate through this new terrain.
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In the fast-paced world of construction, efficient reporting is crucial for general contractors to navigate regulatory landscapes and ensure project success. SkillSmart InSight technology emerges as a game-changer, offering a streamlined solution for general contractors working in Detroit and Wayne County MI, and seeking to demonstrate community commitment and submit Civil Rights, Inclusion and Opportunity (CRIO) reports with ease and accuracy.
Understanding CRIO Reporting:
CRIO reporting is a mandatory requirement for many general contractors in Detroit. These reports play a vital role in maintaining transparency, tracking workforce development, and fostering community engagement. Compiling the necessary data for CRIO reporting can be a time-consuming and complex task, but SkillSmart InSight technology simplifies this process.
Key Features of SkillSmart InSight:
Benefits for Detroit General Contractors:
SkillSmart InSight stands as the pinnacle solution for general contractors working in Detroit, offering unparalleled efficiency in the CRIO reporting process. Our technology sets the standard by automating data collection and reporting, ensuring accuracy, and providing real-time analytics. As the construction industry evolves, SkillSmart InSight not only meets but exceeds the demands of Detroit’s regulatory landscape, making it the optimal choice for contractors seeking a cutting-edge tool to streamline reporting and data collection with confidence and ease. Choose SkillSmart InSight and elevate your construction reporting experience to new heights.
The Treasury Department released its guidance and the proposed rules regarding prevailing wage and apprenticeship requirements for the Inflation Reduction Act. With this announcement it’s clear that investors and owners involved in clean energy projects are facing a pivotal moment.
This proposed rule shines a spotlight on the pressing need for embracing technology to successfully monitor and report prevailing wage compliance in order to maximize access to tax credits and incentives for these important projects.
Using technology to keep tabs on your project’s efforts in meeting prevailing wage and apprenticeship requirements is a big deal for the folks building clean energy projects resulting in more than $270 billion in federal tax credits. Here’s why it matters:
To sum it up, what the IRS is suggesting with this new rule in the Inflation Reduction Act is that folks in the clean energy game need to invest in technology. This investment will result in successful access to tax credits, while helping projects run smoother, increase transparency, and get clean energy projects ready for whatever the future throws their way in an ever-changing world.
The Inflation Reduction Act (IRA) has brought prevailing wage and clean energy together. The IRA includes nearly $270 billion for incentives and tax credits to encourage acceleration of efforts to implement clean energy initiatives. Yet, in order to receive these benefits, businesses must ensure that people working on their projects are being paid the prevailing wage.
Combining these concepts is intended to have positive benefits for both the economy and environment and ensure those working and living in the communities where these initiatives are being implemented will benefit. Each project is required to pay its workers a prevailing wage and employ a certain number of apprentices so that these project investments also train workers for the future.
To be eligible for the tax credits, a business must document that its workers are being paid appropriately and affirm that they have the appropriate number of apprentices The reality is most organizations haven’t done this well and are intimidated to try. This post can de-mystify this issue and help get the projects and tax credits rolling for your initiatives.
Prevailing wage is often used in construction projects to ensure that workers are being paid wages that are comparable to what others are being paid in the region for the same type of work. There is a usually a wage determination for your geographic area, along with corresponding job classifications, and this information can be found at the Department of Labor’s sam.gov website. By coordinating with the local government offices, you will find guidance about the apprentice to journeyman ratio for each project, as well as information on the recordkeeping and reporting requirements. Having the right tools can make this very straightforward, even if you or your clients haven’t managed prevailing wage projects before.
At SkillSmart, our InSight technology is designed to ease challenges in the data collection and project management process. By deploying our platform for one or multiple projects, InSight can:
At SkillSmart we are interested in working with partners focused on doing well while doing good. If you or your clients are pursuing these enhanced clean energy and climate tax incentives and want help simplifying the prevailing wage requirements, please connect with us at www.skillsmart.us