On June 18, 2024, Treasury released the final regulations regarding the IRA prevailing wage and apprenticeship (PW&A) requirements which were established through the Inflation Reduction Act (IRA) [1]. These rules will affect taxpayers intending to qualify for increased amounts of credit or deduction for satisfying PW&A. We anticipate the rules will be effective on Aug. 24, 2024 (60 days after publication in the Federal Register).
The final regulations are generally consistent with the proposed regulations published on Aug. 30, 2023. Some updates or reiterations are addressed in the final regulations, such as:
These final regulations provide taxpayers with the necessary clarity and certainty to support the growth and compliance of qualified projects under the IRA.
Check back soon for additional information related to the final regulations.
Don’t let the fear of complexity around PW&A guidance in the IRA deter you from getting started today. We’ve developed an end-to-end solution for contractors and credit seekers that establishes, monitors and documents compliance with prevailing wage, apprenticeship and penalty requirements.
Maximize your IRA tax credits by complying with the PW&A requirements. Contact a PW&A specialist.
IRA prevailing wage and apprenticeship requirements can significantly enhance the value of tax credits for qualifying energy projects, a five times multiplier. However, unlike Davis-Bacon, compliance is complex and challenging to verify.
Explore how the Inflation Reduction Act prevailing wage and apprenticeship compliance differs from Davis-Bacon regulations, discover strategies to maximize tax credit potential and navigate compliance complexities for contractors and project owners.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
Resource
1. Increased Amounts of Credit or Deduction for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements, Federal Register, 2024
