WASHINGTON, Aug 29 — The US Treasury Department today 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.
By paying the prevailing wage based on Labour Department rules and ensuring the use of qualified apprentices, companies can earn five times the baseline value of tax credits for IRA-qualified projects. Among key new details released are provisions to waive penalties for companies that pay less than an area’s prevailing wage if they correct the error within 30 days of becoming aware it, or before they apply for the tax credit. The company must pay back wages, plus interest.
Another key provision announced on Tuesday is a “good faith” exception from using registered apprenticeship programs if there is none available in the project’s location. The act requires 12.5 per cent of project labour hours to be performed by qualified apprentices for construction beginning in 2023 and 15 per cent for those starting in 2024 or thereafter — provisions aimed at incentivising the training of more skilled construction workers.