Final Regulations on Prevailing Wage and Apprenticeship Requirements Released by Treasury and IRS Under the Inflation Reduction Act | Orrick, Herrington & Sutcliffe LLP

Boost Your Tax Benefits with clean energy Projects

Discover how to maximize tax benefits on clean energy projects with the latest regulations from the U.S. Department of the Treasury and the Internal Revenue Service. The released final regulations outline the requirements for increased tax credits and incentives.

Increased Credit Amounts

Take advantage of increased credit amounts for federal income tax credits like the energy investment tax credit (ITC) and production tax credit (PTC). By meeting specific criteria, taxpayers can qualify for additional benefits.

Qualifying Criteria

• Meet the PWA requirements
• Qualify for the beginning of construction exception
• Fulfill the one megawatt exception

PWA Transition Rule

Under the PWA Transition Rule, work performed before January 29, 2023, is exempt from PWA requirements. Taxpayers only need to comply with PWA regulations for work starting on or after that date.

Compliance Guidelines

Taxpayers who began construction before January 29, 2023, must follow PWA requirements if they fail to meet certain exceptions. Ensure compliance for work done after January 29, 2023, to avoid penalties.

Apprenticeship Requirements

Apprenticeship requirements apply during construction but not after a project is in service. Understand when apprenticeship guidelines are applicable to maximize benefits for alterations and repairs.

Stay Informed

Stay updated with the latest analysis from the Orrick energy tax team as they review the final regulations. Get expert insights to make informed decisions and optimize your tax benefits.