On August 30, 2023 the IRS announced a proposed rule outlining guidance on how prevailing wage and registered apprenticeship requirements pertaining to certain tax credits created or modified by the Inflation Reduction Act will be implemented. To qualify for increased credit or deduction amounts of certain clean energy tax incentives, taxpayers generally need to ensure that laborers and mechanics employed in the construction, alteration, or repair are paid no less than applicable prevailing wage rates and to employ apprentices from registered apprenticeship programs for a certain number of hours. By meeting the necessary IRA prevailing wage and apprenticeship requirements, taxpayers can increase the base amounts of many clean energy tax incentives by 5 times. [Full Text Here]
The affected tax credits include:
§30C Alternative fuel vehicle refueling property credit
§45 Renewable electricity production credit
§45L Energy efficient home credit
§45Q Carbon dioxide sequestration
§45U Zero-emission nuclear power production credit
§45V Clean hydrogen production credit
§45Y Clean electricity production credit
§45Z Clean fuel production credit
§48 Energy credit
§48C Qualified advanced energy project credit
§48E Clean electricity investment credit
§179D Commercial buildings energy-efficiency tax deduction
