WASHINGTON — The U.S. Treasury Department on Tuesday released detailed guidance on wage and apprenticeship requirements for projects using clean energy tax credits, providing flexibility for fixing underpayment errors and for projects unable to hire apprentices.
The proposed new Internal Revenue Service rules for construction of clean energy production and manufacturing facilities build on initial guidance last year in the Inflation Reduction Act, which has enabled the announcement of more than $110 billion worth of clean energy manufacturing investments.
By paying the prevailing wage based on Labor Department rules and ensuring the use of qualified apprentices, companies can earn five times the baseline value of tax credits for IRA-qualified projects.
The proposed rules apply to the clean hydrogen credit (45V) and the renewed 48C credit for “clean energy” manufacturing plants and some other credits in the inflation act, including alternative fuel infrastructure. It does not apply to the 45X advanced manufacturing production tax credits.