Today, the Biden-Harris Administration took its latest step to build a clean energy economy in America that creates good-paying, family-supporting jobs. The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS), in coordination with the Department of Labor (Labor), issued initial guidance to clarify how taxpayers, project developers, contractors and sub-contractors can meet the Inflation Reduction Act’s requirements around prevailing wage and apprenticeship programs
The Inflation Reduction Act committed over $369 billion in new investments to build the clean energy economy and address climate change, with the bulk of these investments delivered through tax incentives. Since the bill’s passage in August, the Biden-Harris Administration has moved at record speed to ensure that the workers and investors who will play vital roles in building America’s clean energy future have the clarity and certainty they need to break new ground.
The initial guidance issued today will help make sure that American workers will prosper from these investments. The guidance provides details on prevailing wage and apprenticeship requirements for enhanced tax benefits, including definitions of key terms and examples of how to comply. In doing so, Treasury and IRS have taken a key step in providing the clarity necessary for taxpayers to leverage the Inflation Reduction Act’s benefits to unlock billions of dollars of private capital while incentivizing businesses across the energy sector to pay prevailing wages and hire registered apprentices.
The Department of Labor is supporting Treasury in its work to implement the Inflation Reduction Act by launching websites dedicated to answering frequently asked questions about prevailing wages and registered apprenticeships. These websites will help taxpayers, project developers, contractors and subcontractors access valuable training and information that will help them comply with the guidance issued by Treasury. With the issuance of today’s guidance, the Biden-Harris Administration continues to deliver on its promise that building the clean energy economy will benefit America’s working families. And our work is far from over. We encourage you to learn more about how to engage with Treasury on the Inflation Reduction Act’s clean energy tax incentives.