Treasury Issues Initial Guidance on Prevailing Wage and Apprenticeship Requirements

On November 11, 2022, the Department of Treasury (Treasury) issued a Notice of Initial Guidance on the prevailing wage and apprenticeship requirements that were added to certain tax credit programs by the IRA. Specifically, the IRA amended sections 30C, 45, 45L, 45Q, 45U, 45Y, 45Z, 48, 48C, 48E, and 179D of the Internal Revenue Code to provide that an increased tax credit or deduction will be available where certain prevailing wage and apprenticeship requirements are met.  A facility generally must meet the requirements to receive the increased credit or deduction amounts if construction or installation of the facility begins on or after the date 60-days after the Treasury publishes guidance on the requirements. The guidance issued by Treasury on November 11 starts the 60-day clock and will take effect on January 30, 2023. The guidance explains when a taxpayer will meet the prevailing wage and apprenticeship requirements.  It also describes how a taxpayer can establish that it has begun construction or installation of a facility.