What is required to prove prevailing wage? To claim the higher 45L credit amounts available for multifamily properties, you must maintain detailed payroll records that reflect payment of wages at least equal to the local prevailing wage set under Davis Bacon. Proving compliance is entirely dependent on retaining adequate documentation that shows you consistently paid all eligible workers at or above the prevailing wage rate for their specific trade and region throughout the construction period.
The requirement to pay prevailing wage is essential for securing the enhanced 45L credits, and both the IRS and the Department of Labor (DOL) will scrutinize your records if audited. Proper recordkeeping is your primary defense. By ensuring all documentation is accurate, complete, and readily available, you can confidently claim the higher credit amounts without concern about labor compliance challenges.
Prevailing Wage Compliance: Required Proof
- Requirement: Must pay workers at least the local prevailing wage set under Davis Bacon to claim the higher 45L credit amounts.
- Documentation: Proving compliance involves maintaining detailed payroll records that reflect these wages.
- Proof Content: Retain documentation showing you consistently paid eligible workers at or above the prevailing wage for their trade and region.
- Wage Reference: You can find these official wage requirements at www.sam.gov.
If you are unsure how to confirm your labor compliance for the 45L credit, feel free to reach out and we can provide additional information.
