Thursday, January 26, 2023

Content Courtesy of: Apprenticeship USA

On August 16, 2022, President Biden signed Public Law 117-369, 136 Stat. 1818, commonly known as the Inflation Reduction Act of 2022 (IRA), into law. The IRA amended the Internal Revenue Code to add prevailing wage and Registered Apprenticeship requirements for taxpayers constructing, and in some case performing alteration or repair, of qualified clean energy facilities, property, projects, or equipment to qualify for increased tax credit or deduction amounts. The U.S. Department of Labor’s (DOL) Office of Apprenticeship is committed to supporting the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) in the effective implementation of these apprenticeship requirements. The IRS has launched a page dedicated to providing the latest information and guidance on the implementation of the IRA.

By statute, the prevailing wage and apprenticeship requirements generally apply to qualifying facilities where construction begins 60 days or more after Treasury and the IRS publish guidance on those requirements. On November 30, Treasury and the IRS published initial guidance on the prevailing wage and apprenticeship requirements. The publication of guidance on November 30 starts the 60-day period, meaning the prevailing wage and apprenticeship requirements will be operative for facilities where construction begins on or after January 29, 2023.

This webpage provides resources on apprenticeship for background information purposes only. Please consult Notice 2022-61 published by the Internal Revenue Service for guidance on the prevailing wage and apprenticeship requirements.

The IRA is by far our nation’s largest investment in clean energy solutions to date. By pairing climate investment, with the creation of good paying jobs, the IRA’s unparalleled investments to fight the climate crisis will help improve job quality in clean energy industries and incentivize the expansion of workforce training pathways into these jobs. The inclusion of Registered Apprenticeship provisions also enables a talent pipeline for developing this critical workforce and ensures that it is an industry-driven approach with high-quality career pathway opportunities for all workers. By utilizing Registered Apprenticeships, employers can develop and prepare their future workforce, and individuals can obtain paid work experience, receive progressive wage increases, classroom instruction, and a portable, nationally-recognized credential.  

The IRA’s prevailing wage and apprenticeship provisions apply to the: 

• Alternative Fuel Refueling Property Credit  
• Production Tax Credit 
• Credit for Carbon Oxide Sequestration  
• Credit for Production of Clean Hydrogen 
• Clean Fuel Production Credit  
• Investment Tax Credit  
• Advanced Energy Project Credit  
• Energy Efficient Commercial Buildings Deduction 

In addition, the IRA’s prevailing wage provisions apply to the: 

• New Energy Efficient Home Credit 
• Zero-Emission Nuclear Power Production Credit