The Inflation Reduction Act of 2022 (IRA) incentivizes clean energy jobs by incorporating labor requirements and promoting workforce development within the United States. The IRA introduced proposed regulations (REG-100908-23) and frequently asked questions with guidance on how taxpayers can document compliance with the new wage and apprenticeship requirements to qualify for the full renewable energy tax credits and deductions under the IRA.
The IRA enhances certain clean energy tax incentives if specified prevailing wage and apprenticeship requirements are met. The prevailing wage and apprenticeship rules will be critical for most renewable energy projects. For projects that fail to meet the prevailing wage and apprenticeship requirements, the credit is reduced to one-fifth of the full amount.
