“The notice of proposed rulemaking Treasury’s releasing today provides employers and workers with more clarity on the IRS’s guardrails, incentivizing employers to adopt worker centred practices and ensures compliance is streamlined,” U.S. Deputy Treasury Secretary Wally Adeyemo told reporters.
For qualifying facilities being built with project labour agreements, which often involve strong union job protections, developers can correct wage errors without penalty if they do so before applying for tax credits. Treasury officials said this would most likely encourage the use of more project labour agreements on IRA job sites.
Clean energy executives have raised concerns about the potential for labour shortages and a lack of apprenticeship programs in some areas.