Highlights

• The U.S. Department of the Treasury and IRS have released proposed regulations regarding increased credit or deduction amounts available to taxpayers meeting prevailing wage and registered apprenticeship requirements for clean and alternative energy-related projects as provided for in the Inflation Reduction Act of 2022.
• Meeting the requirements entails paying wages that are no lower than prevailing rates for construction, alteration or repair work of similar type in the relevant locality as most recently published by the U.S. Department of Labor, as well as meeting apprenticeship hour, ratio and participation requirements.
• Public comment on the proposed regulations is requested by Oct. 30, 2023, and a public hearing is scheduled for Nov. 21, 2023.

Ten months after the release of initial guidance, the U.S. Department of the Treasury and IRS on Aug. 29, 2023, issued proposed regulations regarding increased credit or deduction amounts available for taxpayers satisfying prevailing wage and registered apprenticeship (collectively, PWA) requirements for energy-related projects established by the Inflation Reduction Act of 2022 (IRA). The proposed regulations follow recent action taken by the U.S. Department of Labor (DOL) to finalize regulations in the Davis-Bacon Act related to seeking "bonus credit" under the IRA. (See Holland & Knight's previous alert, "U.S. Department of Labor Announces Final Rule Revamp of the Davis-Bacon Act," Aug. 10, 2023).

The proposed...

Read Full Story: https://news.google.com/rss/articles/CBMilQFodHRwczovL3d3dy5tb25kYXEuY29tL3Vu...