Tax Credit Qualification
Empact enables community and utility-scale project developers to successfully qualify for and monetize a variety of federal and state tax incentives
We are the leading tax compliance management firm, with over 13 GW of community and utility-scale solar, storage, and RNG projects across the US
Empact works with leading law firms, tax equity advisors, and accounting firms to provide transparency and secure tax credit claims
- Gain full compliance visibility across large projects and portfolios with the NexusIQ™ platform
- Leverage Empact technology and compliance management team to manage compliance complexity and headaches
- Utilize Empact reliance letter, certifications and reporting for compliance protection and to offload recapture audit failure risk
Our approach
Empact’s team and technology address key drivers of tax credit risk
With powerful AI tools and in-house expertise, Empact manages complex compliance challenges during construction and operations, compiles comprehensive reporting and audit materials, and backs our work with a financial guarantee
Real-time construction phase risk and compliance
Empact leverages our NexusIQ™ platform and expert team to proactively identify and resolve an average of 1.6 compliance issues per contractor per week
Financial guarantee
The company provides third-party certification with financial liability coverage through reliance letters that satisfy the stringent due diligence requirements of tax equity investors and corporate tax credit buyers, often accelerating project financing and reducing transaction costs
Support during operations
Finally, Empact’s ongoing support through the entire investment tax credit (ITC) recapture period or production tax credit (PTC) term (5-10 years) ensures that developers remain protected against IRS audits and compliance issues that could arise during operations and maintenance phases, including alteration and repair work that triggers renewed prevailing wage requirements
Why compliance matters
Projects often count on PWA and domestic content to meet economic assumptions
But proper compliance is critical to securing the tax credits and ensuring financing from partners with little or no risk tolerance
However, projects found by the IRS to be out of compliance face severe penalties
Worst-case scenarios include recapture, where the government can claw back the excess credits plus interest and penalties.
This makes proper compliance management not just valuable but essential for preserving the substantial financial benefits these enhanced tax credits provide to clean energy investments.
We know tax credits
Empact works with dozens of developers to lock in tax credits for hundreds of solar, wind, energy storage, RNG, and carbon capture projects. How can we support you?
