myTrack® Helps Customers Take Advantage of the Inflation Reduction Act's Tax Credits

October 3, 2023

IRA provision awards companies paying workers prevailing wages and using registered apprentices.

HOUSTON,TX--Management Controls Inc. (MCi), a trusted global provider of contractor data and spend management software, is helping its customer base utilize the Inflation Reduction Act’s 48C(e) tax credit.

Management Controls’ myTrack Platform, which automates time tracking and can show the percentage of apprentices companies have on hand, can help companies confirm they meet initial prevailing time and apprenticeship requirements to qualify for the 48C(e) tax credit.

IRA section 48C(e), the Advanced Energy Project Credit Program, was established to ensure the Davis-Bacon Act prevailing wages are paid to workers on qualifying projects and registered apprenticeships are utilized. This program will provide an investment tax credit of up to 30% of qualifying investment projects.

The Inflation Reduction Act (IRA) provides $500 billion in new spending and tax breaks to boost clean energy, increase tax revenues, and reduce healthcare costs.

According to initial guidance from the Department of the Treasury and the Internal Revenue Service, in partnership with the Department of Energy:

Worker pay cannot be less than the prevailing wage rates in the area where the project is located. The prevailing wage is the combination of the basic hourly wage rate and any fringe benefits rate, paid to workers in a specific classification of labor as determined by the Secretary of Labor.

Depending on the project start date, a minimum of 10% to 15% of total labor hours must be performed by qualified apprentices. Project owners can still qualify for the full tax credit value if they demonstrate a "good faith effort" to meet the requirements, including making written requests to qualified programs.

Using existing TRACK data, customers can request Management Controls assistance with providing the data that contains wage-rate benchmarking to simplify the process of applying for the program. The information can also show the ratio of apprentices used versus more seasoned journeymen.

“The IRA is opening up so many opportunities for companies across the industries we work with, but navigating the initial guidance and gathering the data to qualify for relevant credits can be a difficult undertaking for their finance teams. That’s where Management Controls can help,” said Ken Naughton, president of Management Controls. “Meeting the IRA criteria is table stakes for myTrack and Track. We can produce and automate this information flow to the appropriate parties.”

For more information about Management Controls and meeting the IRA requirements for the 30% tax credit, please visit https://www.managementcontrols.com/ or call us at 855-898-7225.

About Management Controls

Management Controls, Inc. (MCi) helps companies obtain better visibility, control, and productivity from their contract workforce. MCi's myTrack Platform provides automated contract compliance, as well as a holistic view across their entire labor, equipment, and materials spend. myTrack’s real-time data can be proactively applied to optimize performance and safety for routine maintenance, turnarounds, capital projects, and operations. With the powerful addition of MCi’s Insights-as-a-Service and its managed service offering, companies can leverage MCi’s 30+ years of experience to get even more out of myTrack, as well as identify opportunities to improve site productivity overall.