To qualify for increased credit or deduction amounts of certain clean energy tax incentives, taxpayers generally need to: Pay laborers and mechanics employed in construction, alteration or repair no less than applicable prevailing wage rates Employ apprentices from registered apprenticeship programs for a certain number of hours By meeting prevailing wage and apprenticeship requirements under the Inflation Reduction Act of 2022, taxpayers can increase the base amounts of these incentives by 5 times. There are limited exceptions where taxpayers may be eligible to claim the 5-times increase without meeting prevailing wage and apprenticeship requirements: Certain small facilities that produce clean energy under 1 megawatt Facilities that began construction before Jan. 29, 2023 Taxpayers must meet specific recordkeeping requirements to claim these increased amounts. The U.S. Department of Labor determines the applicable prevailing wage requirements for each class of laborers and mechanics in a prescribed geographic area for a particular type of construction. For more information about prevailing wage and apprenticeship requirements, please visit the Department of Labor's website. Eligible credits and deductions Prevailing wage and apprenticeship requirements apply to: Alternative Fuel Refueling Property Credit Renewable Electricity Production Credit Clean Electricity Production Credit Credit for Carbon Oxide Sequestration Credit for Production of Clean Hydrogen Clean Fuel Production Credit Energy Credit Clean Electricity Investment Credit Qualifying Advanced Energy Project Credit Energy efficient commercial buildings deduction Only the prevailing wage requirement applies to: New Energy Efficient Home Credit Zero-Emission Nuclear Power Production Credit Find details at the Department of Labor's website. Guidance Note: These items may contain information that has been superseded by newer guidance. Final regulation: Increased Amounts of Credit or Deduction for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements (June 18, 2024) Proposed regulation: Increased Credit or Deduction Amounts for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements (Aug. 29, 2023) Frequently asked questions about the prevailing wage and apprenticeship under the Inflation Reduction Act (Aug. 29, 2023) Notice 2022-61, Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions (Nov. 30, 2022) News releases IR-2024-169, Treasury, IRS release guidance on the prevailing wage and apprenticeship requirements for increased credit and deduction amounts under the Inflation Reduction Act (June 18, 2024) IR-2023-156, Treasury and IRS issue proposed regulations on prevailing wage and apprenticeship requirements for increased energy credit or deduction amounts (Aug. 29, 2023) IR-2023-208, Treasury and IRS announce guidance on wage and apprenticeship requirements for enhanced credits/deductions (Nov. 29, 2022) IR-2022-172, IRS asks for comments on upcoming energy guidance (Oct. 5, 2022) Related Credits and deductions under the Inflation Reduction Act of 2022 Low-Income Communities Bonus Credit Publication 5855, Inflation Reduction Act (IRA): Prevailing Wage & Registered Apprenticeship Overview PDF Publication 5983, IRA Prevailing Wage and Apprenticeship Requirements Fact Sheet PDF
