Inflation Reduction Act: Prevailing Wage and Apprenticeship Requirement FAQs and Key Takeaways from the Initial Guidance from the Treasury and IRS

Sheppard Mullin – The Inflation Reduction Act restructured the tax credit system associated with qualified clean energy projects. In particular, to receive the full value of various tax credits, companies must now pay the prevailing wage rates and employ a certain number of registered apprentices in the construction, alteration, and/or repair of qualified clean energy facilities or projects. Because the clean energy industry hasn't needed to pay prevailing wage rates to laborers working on clean energy construction projects, many companies in the renewable energy industry may be unfamiliar with the concept of prevailing wage or how the apprenticeship program works.