Your questions about Empact, answered.

Most internal teams weren't built to manage the documentation volume and complexity the IRA created. Empact augments your team, handling data collection, monitoring, and reporting so your team can focus on project execution.

Yes, Empact works directly alongside your tax counsel throughout the engagement. We compile and organize compliance documentation into structured packages designed specifically for tax opinion issuance.

Empact provides investors and credit buyers with direct access to compliance status and documentation through NexusIQ™, giving them the real-time visibility their due diligence requires.

Empact covers Foreign Entity of Concern (FEOC), Prevailing Wage & Apprenticeship (PWA), Domestic Content, Beginning of Construction (BOC), Section 48E, and State Compliance, all in one engagement.

NexusIQ™ is Empact's AI-native compliance management platform. It automates data collection, monitors compliance in real time, and maintains your audit-ready compliance record throughout construction and operations.

NexusIQ™ is accessible to your team, your investors, and your counsel, giving everyone the real-time compliance visibility they need. Empact provides onboarding and ongoing support throughout your engagement.

Empact backs its PWA compliance work with a financial guarantee. If a PWA compliance issue surfaces that Empact missed, the guarantee addresses your project's exposure. For other compliance areas, Empact provides third-party certifications and reliance letters your tax counsel can rely on.

No. Empact monitors compliance through the full ITC recapture period or PTC term, so issues that arise during operations and maintenance never become a surprise.

Yes. Empact's processes and documentation have been validated through Agreed Upon Procedures (AUP) from Big 4 accounting firms. Every engagement includes third-party certifications and reliance letters.

A Foreign Entity of Concern is an entity owned, controlled, or subject to the jurisdiction of a foreign adversary, specifically China, Russia, Iran, or North Korea. Under the One Big Beautiful Bill Act (OBBB), projects with FEOC involvement risk full credit disqualification.

The effective control test looks beyond formal ownership to determine whether a foreign adversary exercises practical control over an entity through contractual rights, board representation, operational influence, or supply chain dependencies. A project can fail the effective control test even if no foreign adversary holds a majority ownership stake.

The FEOC ownership restrictions under the One Big Beautiful Bill Act (OBBB) apply to taxable years beginning after July 4, 2025. For calendar-year taxpayers, that means January 1, 2026. Material assistance restrictions apply to facilities beginning construction after December 31, 2025. Projects that began construction before 2025 are generally not subject to OBBB FEOC restrictions.

PWA requirements mandate that laborers and mechanics on qualifying clean energy projects are paid wages at least equal to the applicable prevailing wage determinations published by the Department of Labor, and that a minimum percentage of labor hours are performed by qualified apprentices from registered apprenticeship programs.

PWA violations do not trigger full credit recapture. Instead, they result in penalties and potential reduction of the enhanced credit rate. Projects that fail to meet PWA requirements lose access to the full 30% Investment Tax Credit (ITC) or prevailing Production Tax Credit (PTC) rate, falling back to the base 6% rate. Unresolved violations become penalties automatically under the regulations.

Prevailing wage underpayments should be corrected by the last day of the first month following the end of the calendar quarter in which the violation occurred. Correction payments must include both back wages and applicable interest. The $5,000, or $10,000 for intentional disregard, per-worker IRS penalty may be waived if the correction payment is made by the required deadline and either (1) the worker was underpaid for less than 10% of their pay periods during the calendar year, or (2) the total underpayment was not greater than 5% of the wages that should have been paid to the worker during the calendar year.

Beginning of Construction is the IRS-recognized date on which a clean energy project officially starts construction. The BOC date locks in the applicable tax credit rules, rates, and requirements for the project. Establishing and documenting a valid BOC date is one of the most consequential compliance steps a developer takes.

The BOC date determines which version of the tax credit rules applies to your project. Under the OBBB, wind and solar projects must begin construction by July 4, 2026 to remain eligible for the Section 48E credit. Documenting a valid BOC date requires contemporaneous records that satisfy IRS requirements.

The Domestic Content bonus provides an additional credit adder for projects that use qualifying US-sourced steel, iron, and manufactured products. Qualifying projects can access an additional 10% credit adder on top of the base ITC or PTC rate. Documentation must be verified at the component level.

Domestic Content compliance requires component-level documentation from manufacturers and suppliers confirming that materials meet the applicable domestic content thresholds. This documentation must be collected, organized, and defensible before closing and throughout the IRS review window.

Section 48E is the Clean Electricity Investment Tax Credit, a technology-neutral credit that replaced the traditional ITC for projects placed in service on or after January 1, 2025. It applies to all generation facilities with an anticipated greenhouse gas emissions rate of zero. The base rate is 6%, rising to 30% with PWA compliance and 40% with Domestic Content.

Section 48E does not replace FEOC, PWA, Domestic Content, or BOC obligations. Each requirement operates independently, with its own deadlines, documentation standards, and consequences for non-compliance. A project must satisfy all applicable requirements to access the full credit value under 48E.

The standard recapture period for the Section 48 Investment Tax Credit (ITC) is five years from the date a project is placed in service, with the credit vesting at 20% per year. Under Section 48E and the OBBB's FEOC provisions, a separate recapture risk applies: if a project comes under the ownership or control of a prohibited foreign entity at any point within 10 years of being placed in service, previously claimed credits may be subject to recapture. Active compliance monitoring through both windows protects against your project's post-close exposure.

An Agreed Upon Procedures engagement is a formal review conducted by an independent accounting firm, typically a Big 4 firm, that verifies compliance processes and documentation against a defined set of criteria. AUP validation is increasingly required by tax equity investors and credit buyers as a condition of closing.