The Internal Revenue Service and the Treasury Department issued a notice explaining how businesses such as builders, developers and owners of clean energy facilities can satisfy the prevailing wage and apprenticeship requirements for enhanced tax benefits under the Inflation Reduction Act.
The publication of the notice last week in the Federal Register started a 60-day period in which taxpayers would need to begin construction of a facility (or installation under the rules for expensing energy efficient commercial building property) to receive the bigger tax breaks. It also includes guidance for determining the "beginning of construction" and "installation" when it comes to deducting the cost of energy efficient commercial buildings.
"One of our top priorities in drafting the Inflation Reduction Act was ensuring clean energy jobs are good-paying jobs and we train the workers needed to fill openings in these growing industries," said Senate Finance Committee chair Ron Wyden, D-Oregon, in a statement last week. "I appreciate Secretary Yellen and the Treasury Department working quickly to craft this initial guidance on protections for workers, and look forward to continuing to work with her on implementation of these historic policies."
The Labor Department also issued its own
Projects that are one megawatt or more that start construction after Jan. 28, 2023, will have to satisfy the prevailing wage and apprenticeship requirements if companies want to qualify for the enhanced tax credit rate.
