Meeting the Inflation Reduction Act (IRA) apprenticeship requirements often involves multiple parties. Each has a distinct role to play in ensuring your project stays compliant and eligible for enhanced tax credits.
The Contractor’s Role
Hire and employ apprentices as W-2 employees.
Track hours weekly and ensure they align with payroll.
Maintain the daily 1:1 apprentice-to-journeyman ratio.
Ensure wage payments meet prevailing wage and apprentice wage progression standards.
Apprentix’s Role
Provide a platform for registering and managing apprentices.
Store and track signed apprenticeship agreements, Davis-Bacon certificates, and Appendix A wage schedules.
Request and received reciprocity agreements when working out of state.
Ensure apprentices remain active and properly documented.
Handle all RAPIDS entries and updates for Fractional Sponsor clients.
Provide compliance alerts, reminders, and audit-ready reports.
Payroll Provider’s Role
Manage certified payroll reporting (WH-347) and maintain prevailing wage compliance.
Provide documentation to auditors on wages, classifications, and crew sizes.
Support restitution processes if back wages are owed.
Compliance Oversight
Independent compliance monitoring for IRA projects.
Review contractor records to ensure the participation requirement, 15% apprentice labor-hour requirement, and ratio requirements are met.
Provide compliance reporting to project owners and investors.
Work alongside Apprentix (complementary services, not overlapping).
Why Roles Matter
Clear roles prevent gaps or duplication of effort. Apprentix handles the apprenticeship side, payroll providers handle wages, and oversight firms verify compliance for project owners. Together, they ensure contractors stay eligible for IRA tax credits.