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August 29, 2023

IRS releases proposed rules on prevailing wage and apprenticeship requirements for clean energy projects

The IRS and Treasury have issued proposed regulations (REG-100908-23) on satisfying the prevailing wage and apprenticeship requirements established by the Inflation Reduction Act to get increased federal income tax credits and deduction for eligible clean energy projects. The proposed rules also address how taxpayers can cure their initial failure to comply with the new requirements. The new requirements apply to credits under IRC Sections 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, and 48E and the deduction under IRC Section 179D. The proposed rules expand on earlier guidance in Notice 2022-61 (see Tax Alert 2022-1832). A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor