7-Attachment B - Scope of Work - MH26-2 Tax Consulting for Clean Energy Tax Credits (Draft).docx

Scope of Work Attachment B MH26-2 Tax Consulting for Clean Energy Tax Credits

1. PURPOSE

The State of Utah is issuing a Request for Proposal (RFP) to establish a multiple contract portfolio for Tax Consulting for Clean Energy Tax Credits. It will be part of the State of Utah Cooperative Contracts and will be for the benefit and use of all Eligible Users, which includes the State of Utah’s government departments, institutions, agencies, political subdivisions (e.g., colleges, school districts, counties, cities, etc.), and, as applicable, nonprofit organizations, agencies of the federal government, or any other entity authorized by the laws of the State of Utah to participate in State Cooperative Contracts. This contract does not guarantee any sales.

2. BACKGROUND / ANTICIPATED SERVICES

It is anticipated that the awarded Contractor(s) will provide expert services related to clean energy tax credits, including, but not limited to, the Inflation Reduction Act (IRA) of 2022. This Request for Proposal (RFP) is to solicit comprehensive responses from experienced firms capable of advising on, implementing, and defending tax strategies for the Eligible Users' clean energy projects.

3. SCOPE OF WORK

The Contractor must be able to provide the following Tax Consultant Services:

A. Tax consultation services on clean energy tax credits, including, but not limited to, the following sections of 26 U.S. Tax Code: Section 48; Section 48E; Section 45W; Section 30C.

B. Tax consultation services on the implementation of Elective Pay, made possible through the Inflation Reduction Act (IRA) of 2022.

C. The Contractor must be prepared to provide tax consultation on the potential implications of proposed legislation, including, but not limited to, H.R.1 - One Big Beautiful Bill Act, on the clean energy tax credits. This includes analyzing potential changes to credit eligibility, value, and transferability.

D. Legal services to support the above tax consultation efforts, federal tax filings, audit defense with the IRS, etc.

E. “Full Service" tax credit implementation - The Contractor will be responsible for a complete, end-to-end "full service" approach to tax credit implementation, including, but not limited to:

i. Project(s) assessment for eligibility to claim tax credits;

ii. Energy project analysis to maximize available credit and ensure compliance with Federal tax code;

iii. Documentation of tax credit calculations, including workpapers and supporting source documents;

iv. Reporting and compliance;

v. Electronic tax filing services; and

vi. IRS audit support.

F. The Contractor must adhere to the requirements outlined below when housing sensitive information, i.e., regulated (tax) data. Contractor must comply with the Utah terms and conditions, where the product housing sensitive information does not already have a Fed RAMP or verified GovRAMP status, the following provisions apply:

i. At the time of contract execution, the product must be enrolled in the GovRAMP Progressing Snapshot Program and remain in the program until a verified status is achieved.

ii. The product must achieve a verified status of GovRAMP Core no later than 12 months after the date of contract execution and achieve a verified status of GovRAMP Moderate Authorized no later than 24 months after the date of contract execution.

iii. If the Contractor fails to maintain or achieve the security requirements outlined above, the Contractor may be subject to liquidated damages and/or the State of Utah may reevaluate the terms of the contract and determine whether the failure to comply justifies contract termination.

4. PRICING INFORMATION

Invoicing may be prepared using a Blended Hourly Rate and/or a Fixed Fee Rate per Project. This Contract will allow flexibility to use a combination of billing methods. Contractor’s quoted rates may not increase if the quoted services have started for the Eligible User, unless additional services are added by the Eligible User during the process and the terms are agreed to in writing by the parties.

A. The "Blended" Hourly Rate is the maximum billable rate for all services, including all labor costs for staff and profit. Labor may include account supervision, planning consultation, and other labor expenses required to accomplish the needed tasks.

B. Fixed-Fee pricing will encompass a single, all-inclusive price for a clearly defined project scope. This pricing method will be implemented only after the project has been confirmed as eligible for a tax credit and all project details have been solidified.

C. Prices are guaranteed for at least 12 months. After the price guarantee period is over, the Contractor may request a price increase, accompanied by a market analysis justification provided by the Contractor to the Division of Purchasing Contract Manager. The Division of Purchasing Contract Manager has the right to approve or deny any price increase request. An approved price increase request requires an amendment to the Contract.