Clean Incentives: What Canada Can  Learn from the US Playbook on  Wage Compliance and Clean  Technology

Table of Contents

• Introduction
• Key Highlights
• Why This Matters

Introduction

Clean technology projects are booming in North America, and with them come new labour requirements tied to valuable tax incentives. Our Business Development Manager, Taylor Gant, recently joined Brenden Sigalet on the Bennett Jones LLP’s Clean Incentives podcast to discuss how prevailing wage compliance is shaping the  industry in both the U.S. and Canada.

Watch this clip where Taylor explains why payroll verification goes beyond the numbers. Clean Incentives is a production of the Bennett Jones Business Law Talks Podcast and is shared here with permission.

Key Highlights

• Payroll is more than paperwork
  Taylor explained that certified payroll is only a synthesis of many documents. Mistakes happen, so compliance requires checking cheque stubs, timesheets, and fringe remittances to ensure workers are truly paid what they’re owed.
• Lessons from the U.S. Inflation Reduction Act
  The U.S. tied prevailing wage and apprenticeship requirements to clean energy tax credits under the IRA. Responsibility often falls on the taxpayer claiming credits, creating new challenges for contractors and developers.
• Differences between the US IRA and Canada ITC
  Canada’s rules look similar at a high level but differ in key ways:
  apprenticeship percentages (10% vs. 15% in the U.S.), stricter “reasonable effort” timelines, and reliance on collective labour agreements.
• Prevailing wage documentation pushback
  Contractors sometimes resist providing detailed records, especially when requirements weren’t written into contracts. Best practice is to involve legal, tax, and compliance teams early to ensure agreements cover documentation needs.
• CT ITC penalties for non-compliance
  Both U.S. and Canadian systems impose financial penalties and back pay obligations. In serious cases, negligence can escalate fines dramatically or reduce the value of tax credits.

Why This Matters

At Alliant Consulting, our role is to help clients navigate these evolving compliance landscapes. By auditing payroll before regulators do, we ensure contractors and developers can claim incentives confidently while protecting workers’ rights.

As clean technology projects accelerate, compliance is becoming a cornerstone of both financial success and industry integrity. To learn more about how we support clean technology projects, contact our team or listen to the full podcast episode hosted by Bennett Jones LLP.