On August 30, 2023, Treasury issued a notice of proposed rulemaking providing information on how clean energy projects may qualify for increased tax credits or deductions by meeting prevailing wage and apprenticeship (PWA) requirements. By meeting these requirements, a variety of clean energy projects may qualify for increased credits or deductions of up to five times the base amount. IRA tax credit and deductions eligible for PWA bonuses include: the clean energy investment tax credit, production tax credit, carbon capture and sequestration credit, and clean hydrogen credit, among others.
The proposed regulations address specific eligibility requirements for bonuses requiring both apprenticeship and prevailing wages, as well as those programs providing bonuses when projects only meet prevailing wage and not apprenticeship requirements. In addition, the regulations address recordkeeping and reporting requirements, procedures for utilizing elective payment and transfer of credits, as well as correction and penalty procedures for projects that initially fail to comply with the PWA requirements.
Treasury is holding a public hearing on the proposed regulations on November 21, 2023, at 10 a.m. ET. The agency is also accepting public comments on the proposal through October 30, 2023.
Treasury launched an informational FAQ website to answer questions about PWA eligibility requirements.
Treasury is hosting a tribal consultation on the proposed rule on September 25, 2023 at 1 pm ET. Register here.