Baker Tilly Case Study: Not-for-Profit Implements Inflation Reduction Act Guidance To Maximize Their Credit While Building a New Hospital
Business challenge
A non-profit health system in the Eastern U.S. was building a new hospital with a central utility plant. The health system was not aware that the energy project was eligible for Inflation Reduction Act (IRA) tax credits under the recently passed IRA.
How Baker Tilly helped
Baker Tilly's dedicated team of subject matter experts guided this organization along the path to maximizing the IRA credit. Our prevailing wage and apprenticeship (PW&A) bonus credit compliance solution allows for proactive monitoring of any non-compliance, providing users with the most efficient path to cure before penalties are incurred, and fulfillment of record-keeping requirements.
Baker Tilly’s IRA experts performed all elements of the four-phase eligibility review, including documenting the beginning of construction to meet PW&A safe harbor exemption, cost segregation, final documentation and filing support. Through this process, Baker Tilly is able to compile and complete all compliance documentation needed to substantiate the client’s credit.
The result
The client expects to have their new combined heat and power (CHP) plant in service in the summer, so the final cost segregation and documentation will be completed in the fall.
It’s never too late to evaluate compliance. Involving PW&A compliance experts can help prevent or minimize penalties. While the errors we discover are often innocent, they can still pose significant risks for credit seekers. Engaging Baker Tilly for tax credit compliance in the early stages of construction allows for early identification of non-compliance, saving time and money for credit seekers.
