On November 30, 2022, the Internal Revenue Service (the “IRS”) released Notice 2022-61 with initial guidance (“Guidance”) on the prevailing wage and apprenticeship requirements and beginning of construction standard under the Inflation Reduction Act (the “IRA”). Shortly after, the Department of Labor (the “DOL”) published on its website Frequently Asked Questions (“FAQ”) and hosted a webinar providing additional guidance. Taxpayers meeting the prevailing wage and apprenticeship requirements may claim enhancements to various tax credits under the IRA. Under these provisions, a taxpayer seeking enhanced tax credits is required to pay prevailing wages to any laborers and mechanics employed in the construction, alteration, or repair of a qualified facility, and is required to meet certain labor hours, journeypersons-to-apprentices ratio, and participation requirements with regard to the use of apprentices at such facilities. For additional information on these requirements, please see our prior alert on this topic.
The Effective Date of Prevailing Wage and Apprenticeship Requirements
Publication of Notice 2022-61 constitutes “guidance” for purposes of triggering commencement of the 60-day period after which the prevailing wage and apprenticeship requirements of the IRA take effect. Accordingly, these requirements will apply to any qualified facility the construction of which begins on or after January 29, 2023. Under the IRA, a qualified facility the construction of which...
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