Treasury and IRS Issue Guidance on Wage and Apprenticeship Requirements for Enhanced Credits/Deductions
The Treasury Department and IRS recently announced guidance providing taxpayers information on how to satisfy the prevailing wage and apprenticeship requirements for enhanced tax benefits under the Inflation Reduction Act. The guidance will be published in the Federal Register on Nov. 30.
Notice 2022-61 explains how taxpayers – generally builders, developers and owners of clean energy facilities – receive the increased tax credits or deduction amounts by satisfying the wage and apprenticeship requirements as provided for in this notice. For instance, the notice provides guidance on what constitutes a prevailing wage and the determination of qualified apprenticeships with accompanying examples.
The publication of this notice in the Federal Register begins the 60-day period in which taxpayers must begin construction of a facility (or installation under the rules for expensing energy-efficient commercial building property) to receive the enhanced tax benefits without satisfying the prevailing wage and apprenticeship requirements as described in the notice.
Finally, the notice provides guidance for determining the "beginning of construction" (and "installation" for purposes of the rules for deductions for the cost of energy-efficient commercial building property placed in service during the tax year).