IRS Finalizes Prevailing Wage and Apprenticeship Requirements Impacting Ten Key Tax Benefits

The Department of Treasury and Internal Revenue Service released final legislation on June 18th, 2024, for requirements regarding prevailing wage and apprenticeship (PWA). There are ten tax benefits affected by the Inflation Reduction Act:

Taxpayers meeting the prevailing wage and apprenticeship requirements can, generally, increase the base credit or deduction amount by a five times multiplier. Alongside meeting the PWA criteria, qualifying activity must be performed by “construction, alteration or repair of certain clean energy facilities or properties, projects or equipment”. The PWA requirements apply to all labors of the taxpayer who are employed during the construction of qualifying work and are solely responsible for ensuring that the PWA requirements are satisfied.

As mandated by the Internal Revenue Service, to meet PWA taxpayers must: