In Brief

On 30 November 2022, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) published Notice 2022-61 (the “Notice”), which provides much-awaited guidance on the application of “prevailing wage” and “apprenticeship” requirements relevant to determining the amount of several renewable energy and other clean technology tax credits that were enacted, extended or modified by the Inflation Reduction Act (“IRA”). The guidance provided by the Notice is fairly scant and leaves a number of issues unaddressed. It seems that the issuance of the Notice was rushed in order to start the 60-day period prior to the end of which the construction of credit-eligible projects must begin in order for the “prevailing wage” and “apprenticeship” requirements to be deemed satisfied. The Notice explicitly states that it constitutes the guidance that starts this 60-day clock pursuant to the IRA.

Key Takeaways

• The Inflation Reduction Act added “prevailing wage” and “apprenticeship” requirements for certain facilities that qualify for tax credits available for renewable energy production and certain other “clean” and advanced technologies. A credit-eligible facility must satisfy these requirements in order to qualify for the highest amount of tax credits available.
• Pursuant to the IRA, credit-eligible facilities are generally deemed to automatically satisfy the “prevailing wage” and “apprenticeship” requirements if their construction begins before the date that...

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