Industry Alert: Notice 2022-61 Clarifies Prevailing Wage And Apprenticeship Requirements Under The IRA

On November 30, 2022, the IRS issued Notice 2022-61, providing initial guidance on the wage and apprenticeship requirements included in the Inflation Reduction Act of 2022.  The IRA established increased benefit levels for energy-efficient incentives related to EPAct 179D and 45L that may only be obtained when prevailing wage and apprenticeship requirements are satisfied.  This Notice provides additional detail regarding these requirements, associated recordkeeping, and project timing.   

The prevailing wage and apprenticeship requirements delineated in the Notice will apply to facilities for which construction begins on or after 1/30/2023.   

PREVAILING WAGE RATE REQUIREMENTS  

The “Prevailing Wage” requirement states that mechanics and laborers must be paid no less than the prevailing wages required to be paid for federal construction work.  (The wage will vary based on exact job description and geographic location.)   

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