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OFCCP to Launch Construction Contract Award Portal and Hold Related Webinar

The Office of Federal Contract Compliance Programs recently announced the launch of a new online platform aimed at modernizing how the agency receives notices about construction contract and subcontract awards. The Notification of Construction Contract Award Portal will launch Aug. 26.

Contractors will be able to utilize NCAP to submit a notice to OFCCP within 10 business days of a federal or federally assisted contract over $10,000, in compliance with existing requirements. These requirements can viewed at 41 CFR 60–4.2.

In conjunction with the NCAP’s launch, OFCCP will conduct a public webinar to provide an overview and demonstration of the platform. The webinar will take place on Aug. 26 at 2 p.m. ET. Advance registration is not required and the webinar can be accessed at that time here. A recording will be available after the session on the NCAP website.

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ABC Opposes Union Labor Requirements on Electric Vehicle Charging Station Installation

On Aug. 22, ABC submitted comments to the U.S. Department of Transportation in opposition to union labor requirements included in a proposed rule establishing the National Electric Vehicle Infrastructure Formula Program.

The NEVI Formula Program will implement provisions of the Infrastructure Investment and Jobs Act, signed into law in 2021, that include $7.5 billion for electric vehicle charging stations (including $5 billion over five years to install EV chargers mostly along interstate highways). The intent of the program is to support the installation of 500,000 electric vehicle chargers across the country by 2030 as part of a domestic push to shift away from gas-powered vehicles.

ABC submitted comments in response to a request for information on the program on Jan. 28. ABC urged the DOT to avoid union labor requirements and to instead welcome all qualified contractors to build EV chargers. Unfortunately, the agency disregarded these recommendations in the proposed rule.

The proposed rule contains several concerning labor provisions of interest to the construction industry and ABC members. It requires that all electricians working on electric vehicle supply equipment either be certified by the International Brotherhood of Electrical Workers’ Electric Vehicle Industry Training Program or be a graduate of a government-registered apprenticeship program with a focus on EVSE installation approved by the U.S. Department of Labor in consultation with the DOT. Additionally, the proposed rule requires all NEVI-funded projects that require more than one electrician to use at least one GRAP-enrolled apprentice.

ABC’s comments push back against these requirements, making the following key points:

  • EVITP requirements will exacerbate the skilled labor shortage, exclude experienced contractors, increase project costs and delay the rapid installation of EV chargers.
  • The proposed rule’s alternative GRAP requirements are currently unworkable and impossible to satisfy. The rule specifies these GRAP programs must include EVSE-specific training developed as a part of a national guideline standard approved by the DOL and DOT, which has not been created yet. This means there is no alternative to the EVITP in the proposed rule. In addition, the GRAP requirements will disproportionately impact nonunion contractors/workers and small, minority- and women-owned businesses/contractors.
  • The DOT should thoroughly evaluate existing licensing, training and certification policies and practices instead of imposing new mandates.

The proposed rule’s comment period is now closed. ABC will continue to monitor this issue and provide updates in Newsline on the forthcoming final rule and possible litigation challenging this provision. If you would like more information, please contact Michael Altman.

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ABC Urges DOL to Withdraw Rule on Nondisplacement of Qualified Workers Under Service Contracts

On Aug. 15, ABC submitted comments to the U.S. Department of Labor identifying a number of concerns with its proposed rule on Nondisplacement of Qualified Workers Under Service Contracts, which would implement Executive Order 14055. Issued on Nov. 18, 2021, by President Biden, the EO requires that federal agencies include a clause about nondisplacement of workers in solicitations and contracts for projects covered by the McNamara-O’Hara Service Contract Act of 1965. The required clause states that successor contractors and subcontractors who win a bid for covered work must offer qualified employees employed under the predecessor contract a right of first refusal of employment under the successor contract.

In its comments, ABC urged the DOL to withdraw the rule in its entirety. The comments state, “ABC is concerned that, as written, the NPRM conflicts with the plain language of the SCA, which does not authorize the DOL, or the president, to require contractors to hire the incumbent employees of predecessor contractors on projects covered by the SCA. Two courts have so held without contradiction by Congress or by any other courts. In each of these cases, the courts rejected efforts by employees and/or labor organizations to assert preferential hiring rights for incumbent employees under the Act.

“In addition to and apart from the above conflict between the NPRM and the governing statute, ABC is also concerned that the proposal would create gross inefficiencies in the procurement process and would disproportionately impact small contractors and subcontractors through the imposition of additional regulatory burdens and substantial costs of compliance.” According to the NPRM, the total number of potentially affected small firms ranges from 74,097 to 329,470.

Further, “ABC observes that neither the EO nor the proposed rule contains any evidentiary support for the claim that the proposed changes will actually achieve greater efficiency in federal procurement. As is evident from the discussion of specific provisions of the NPRM, the proposed rule is likely to create greater inefficiencies as successor contractors are forced to employ workers who are not familiar with the often-different work practices that the successors may wish to implement. Thus, the cost savings that an agency may seek to achieve by hiring a new contractor will be lost or unobtainable if the successor is not allowed to bring its own uniquely qualified workforce onto the project.”

Continue to follow Newsline for any further updates.

 

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ABC: President Biden’s Inflationary PLA Schemes Hurt Taxpayers and Construction Job Creators

ABC condemned an Aug. 19 proposed rule, Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects, which requires federal construction contracts of $35 million or more to be subjected to controversial project labor agreements, saying it will result in the award of construction contracts to powerful special interests at the expense of hard-working taxpayers and limit fair and open competition in government contracting.

“The Biden administration continues to move forward with its steady drumbeat of burdensome, inflationary and anti-competitive policies that will needlessly raise costs on taxpayer-funded construction projects and steer contracts to unionized contractors and workers,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs in a news release.

“When mandated by governments, PLAs increase construction costs to taxpayers by 12% to 20%, reduce opportunities for qualified contractors and their skilled craft professionals and exacerbate the construction industry’s worker shortage of 650,000,” said Brubeck. “ABC will continue to fight for quality, experienced contractors harmed by this proposal and the 87.4% of construction workers who have already made the choice not to belong to a union and want a fair opportunity to participate in local federal infrastructure projects––but cannot do so because of PLA schemes.

“ABC estimates this proposal­­­, once finalized, could impact 120 federal contracts valued at $10 billion, which is roughly 40% of the value of federal construction put in place on an annual basis,” said Brubeck. “In addition, ABC condemns Biden administration policies independent of this rulemaking that push PLAs on competitive grant programs administered by federal agencies affecting billions of dollars’ worth of federally assisted construction projects procured by state and local governments.

“ABC will continue to challenge these policies that favor special interests, educate stakeholders about the negative impact of PLAs on federal and federally assisted projects and urge stakeholders to submit comments in response to the proposed rule by Oct. 18,” said Brubeck.

On Friday, ABC sent a grassroots action alert urging members and industry stakeholders to ask lawmakers to co-sponsor the Fair and Open Competition Act (H.R. 1284/S. 403), introduced by Sen. Todd Young, R-Ind., and Rep. Ted Budd, R-N.C., restricting government-mandated PLAs on federal and federally assisted construction projects. Please share this link to the ABC grassroots alert with your colleagues and industry stakeholders.

ABC will hold a members-only webinar on Thursday, Aug. 23, to explain what the proposed FAR rule means for federal contractors and steps ABC members and stakeholders can take to fight for fair and open competition in government contracting.

Next week ABC will send a survey to membership asking for opinions on government-mandated PLAs and the proposed rule that will be used to inform advocacy strategies and ABC, ABC member and industry partners’ comments on the proposed rule.

Timeline of the Opposition to President Biden’s Executive Order 14063

On Feb. 4, President Biden signed EO 14063 requiring federal construction contracts greater than $35 million to be subjected to PLAs. ABC blasted the EO, calling it anti-competitive for small businesses and costly for taxpayers.

On Feb. 15, ABC and 15 organizations representing tens of thousands of companies and millions of employees in the construction industry sent a letter to President Biden outlining concerns with the EO, saying that “the administration’s broad assertion that businesses not affiliated with unions are unable to deliver safe, on-time, on-budget government construction projects while obeying federal labor laws and paying high wages to employees is unfounded.”

On Feb. 28, ABC and a coalition of 19 organizations from the construction industry and the business community sent a letter to Congress in support of the Fair and Open Competition Act (S. 403/H.R. 1284), which would restrict government-mandated PLAs on federal and federally assisted construction projects and “curb waste and favoritism in the procurement of construction projects and ensure taxpayer dollars are spent responsibly by letting the market determine if a PLA is appropriate.”

On March 7, Sen. Todd Young, R-Ind., led a group of 42 Senate Republicans in sending a letter to President Biden opposing the EO, saying that “a fair and open bidding process for federal construction projects would guarantee the best value for hardworking taxpayers located in all geographies and regions across the United States.”

On March 8, Rep. Ted Budd, R-N.C., and 59 House members signed a letter to President Biden saying that PLA mandates and preferences will “deny critical construction jobs to local workers and small businesses,” urging the White House to refrain from “attaching strings to infrastructure funding that create discriminatory barriers to recovery.”

On April 6, ABC sent a letter to the White House with more than 1,200 signatures from members and chapters voicing strong opposition to President Biden’s pro-PLA EO because “hardworking taxpayers deserve more efficient and effective policies that will encourage all qualified contractors and their skilled workforce to compete to build long-lasting, quality projects at the best price.”

On April 26, 18 Republican governors, led by Asa Hutchinson of Arkansas and Bill Lee of Tennessee, sent a letter to the White House opposing the Biden administration’s policies promoting government-mandated PLAs on federal and federally assisted taxpayer-funded construction projects because it “will undermine taxpayer investment in billions of dollars of forthcoming public works projects financed by the Infrastructure Investments and Jobs Act of 2021 and additional bipartisan legislation passed by Congress, all of which was signed into law free from language requiring or encouraging the use of PLAs.”

On Aug. 23, ABC sent a letter to the FAR Council requesting a 60-day extension from the current proposed rule comment deadline of Oct. 18.

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NCCER Announces Nationwide Expansion of Free Career Exploration Website

Through its Build Your Future initiative, NCCER is expanding its career exploration tool, CareerStarter, to provide direct connections between entry-level job seekers, local training programs and employers.  

On the CareerStarter platform:

  • Students and job seekers can explore potential career paths, then find the right educational or work opportunities to help them take their next steps.  
  • Employers can find talent for their company by building a business profile, posting free and unlimited entry-level job listings and using the automatic candidate matching feature. 
  • Educators can promote their training programs while monitoring students’ activity on the tool and tracking the direct success stories of their program. 

CareerStarter has already helped hundreds of future craft professionals take their first steps into the construction field. Its free to individuals, schools, employers and training programs.

To check out CareerStarter, visit careerstarter.byf.org

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Member Comments Needed on FWHA’s Union Labor Requirements for Electric Vehicle Charging Station Installation

The comment deadline for the Federal Highway Administration’s June 22 proposed rule for the National Electrical Vehicle Infrastructure Formula Program is Aug. 22. The proposed rule would require contractors to use government-registered apprentices and the controversial union-backed Electric Vehicle Industry Training Program.

The Infrastructure Investment and Jobs Act, signed into law in 2021, includes $7.5 billion for EV charging stations, which includes $5 billion over five years to install EV chargers mostly along interstate highways. The proposed rule provides requirements for implementing this funding. ABC previously responded to a request for information on the program urging the FHWA to avoid union labor requirements and to instead welcome all qualified contractors to build EV chargers.

ABC is currently finalizing comments opposing the labor requirements of the proposed rule. ABC member contractors comprise a key segment of the construction industry’s EV contracting base. Failing to encourage an inclusive policy will ultimately undermine the Biden administration’s goal of increasing the number of EV charging stations across America from 48,000 to 500,000 by 2030 and building America’s new clean energy infrastructure.

If you are interested in submitting comments before the deadline and need assistance, please reach out to Michael Altman and/or Ben Brubeck.

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ABC Supports Proposed Buy America Waivers

On Aug. 15, ABC submitted comments to the U.S. Environmental Protection Agency in support of its proposed Small Projects and De Minimis General Applicability Waivers for Buy America requirements.

The $1.2 trillion Infrastructure Investment and Jobs Act, signed into law in November 2021, included the “Build America, Buy America Act,” which expanded and made significant changes to Buy America requirements for federally funded infrastructure projects. The IIJA broadens Buy America preferences to include nonferrous metals, such as copper used in electric wiring; plastic- and polymer-based products; glass, including optical fiber; and certain other construction materials, such as lumber and drywall.

The EPA’s proposed waivers would apply to water infrastructure projects funded through the agency’s federal assistance programs. The Small Projects waiver would exempt all projects receiving less than $250,000 in funds, and the De Minimis waiver would exempt products that comprise 5% or less of a project’s total materials cost.

ABC’s comments supported both waivers and urged the EPA to engage in further study and public comment periods prior to implementing Buy America requirements, especially in light of economic headwinds impacting the construction industry. In the comments, ABC supports strategies to expand domestic jobs and manufacturing to avoid global supply chain disruptions and strengthen the American economy but urges the EPA to ensure Buy America requirements safeguard against increased costs and delays of taxpayer-funded infrastructure.

ABC will continue to monitor implementation of Buy America requirements and participate in the regulatory process. 

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ABC Criticizes Proposed Changes to Davis-Bacon Survey Form

On Aug. 15, ABC submitted comments on the U.S. Department of Labor Wage and Hour Division’s notice of a proposed revision to the Information Collection Request, titled “Report of Construction Contractor’s Wage Rates.” This ICR governs the WD-10 form used in wage surveys to determine the prevailing wage rate under Davis-Bacon and Related Acts requirements.

Under the 1931 Davis-Bacon Act and related regulations, contractors and subcontractors on federal and federally funded construction contracts must pay at least the locally prevailing wage and benefit rate, as determined by the WHD, to construction workers. To determine these rates, WHD distributes WD-10 forms to construction employers in a given locality. Under current rules, if at least 50% of workers in a classification are paid the same rate, it is designated as the “prevailing wage.” If no wage prevails, an average rate is calculated.

ABC’s comments  on the June 15 proposed revisions reiterated the significant flaws in the wage survey process, which the changes to the WD-10 form entirely fail to address. The comments also addressed concerns regarding the length of the survey, bias in the newly preselected listing of job classification toward unionized job descriptions, and inaccuracies in the WHD’s assessment of the burden of the proposed information collection.  

The proposed changes come in the context of the WHD’s proposal to dramatically expand and alter prevailing wage regulations, which ABC opposed in extensive comments. ABC will continue to advocate for common-sense reforms to Davis-Bacon regulations and will provide updates in Newsline.

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Democrats’ Reconciliation Package Is Signed Into Law With ABC-Opposed Wage, Labor Mandates

The controversial $740 billion partisan budget reconciliation package, the Inflation Reduction Act of 2022, was signed into law by President Biden on Aug. 16 following its passage by the U.S. Senate on Aug. 8 (51-50) and the U.S. House of Representatives on Aug. 12 (220-207).

Ahead of the bill’s Senate passage, ABC issued a statement opposing the IRA, an ABC grassroots action alert and a key vote letter to the Senate against the bill. ABC also issued a statement reacting to Senate and House passage of the bill.

ABC joined a coalition of small business organizations in opposing the legislation’s harmful tax provisions, which are highlighted in this ABC analysis of the IRA’s troubling tax hikes and restrictive labor policies.

Problematic language in Subtitle D-Energy Security of the IRA generally slashes longstanding and current clean energy tax credits from 30% to a baseline credit of 6%. However, the IRA gives developers a bonus tax credit that is 500% higher than the baseline credit if they require project contractors to pay construction workers union-scale, government-determined hourly wages and benefits via the archaic and inflationary Davis-Bacon Act of 1931 and use apprentices enrolled in government-registered apprenticeship programs. In most cases, both conditions must be met to qualify for the bonus rate.

Rewriting the U.S. tax code to enact pro-labor policies sets a dangerous precedent that rewards special interests and distorts the free market’s compensation and workforce development practices on private construction projects. This new bonus credit not only penalizes employers that believe in fair and open competition and pay wages based on experience, quality and market rates, but also limits opportunities for thousands of small businesses, construction workers and industry-recognized apprentices.

The following ABC assessment of the IRA’s new labor requirements on clean energy and energy efficient commercial buildings (179D tax deduction) construction projects eligible for these tax credits may evolve following additional clarification and forthcoming rulemaking.

Prevailing Wage Requirements for Bonus Credit on Eligible Projects

Developers seeking the full bonus credit must require contractors and subcontractors to pay laborers and mechanics employed for the construction and alteration or repair of a qualifying project an hourly prevailing wage rate set by the U.S. Department of Labor via the Davis-Bacon Act.

In the event developers fail to satisfy these requirements, the developer may cure the discrepancy—and thus still claim credits at the bonus rate—by compensating each worker the difference between actual wages paid and the prevailing wage, plus interest, in addition to paying a $5,000 penalty to the U.S. Department of the Treasury for each worker paid below the prevailing wage during the taxable year.

If the U.S. Treasury secretary determines that the discrepancy is the product of intentional disregard, the developer must compensate each worker three times the difference in wages and the penalty to the Treasury is increased to $10,000 per worker. Once the secretary determines that a discrepancy occurred, the taxpayer must make payments to the employees and the Treasury within 180 days of the determination in order to remain in compliance with the prevailing wage requirements.

Of note, non-compliance penalties appear to differ from those currently set under long-standing requirements of the Davis-Bacon Act, as the DOL’s 2022 proposal making radical changes to Davis-Bacon Act regulations is expected to create additional confusion and uncertainty for stakeholders

Forthcoming regulatory guidance from the Treasury for the IRA and the DOL for new DBA regulations may provide additional clarity. Expect analysis from ABC following the release of this information.

Government-Registered Apprenticeship Requirements for Bonus Credit on Eligible Projects

Developers of qualifying projects are required to use apprentices from government-registered apprenticeship programs for 2024 for at least 15% of the total labor hours of the project, which phases in at 10% for construction work beginning in 2022, 12.5% for construction work in 2023 and 15% in 2024 and thereafter.

Each contractor and subcontractor employing four or more individuals on a qualifying project must employ one or more apprentices from a government-registered apprenticeship program.

The project must follow applicable apprentice-to-journeyperson ratios for each trade, as specified by the DOL or equivalent state agency.

Of note, government-registered apprenticeship programs may not have the capacity to meet these demands, as there are few GRAPs in some states and they graduate only 40,000 to 45,000 construction industry apprentices a year, as discussed here.

In the event a developer fails to satisfy these requirements, the developer may cure the discrepancy by paying a penalty to the Treasury equal to $50 multiplied by the total labor hours for which the requirements are not satisfied. This penalty is increased to $500 per hour in the event the Treasury secretary determines that such discrepancy was the product of intentional disregard.

Of note, taxpayers who have made a good faith effort to hire qualified apprentices with respect to the construction of a project are deemed to satisfy the requirement and are eligible for the bonus rate, assuming they have also met the prevailing wage requirement when required. A good faith effort is defined as requesting apprentices and receiving a denial or not receiving a response within five business days.

Next Steps

The Davis-Bacon Act prevailing wage and government-registered apprenticeship requirements apply to projects that begin construction 60 days after the Treasury has published relevant guidance with respect to the requirements. Note that these provisions will be subject to additional clarification, reporting and guidance in forthcoming regulatory actions, which ABC will be engaged in and will notify ABC stakeholders about, as appropriate.

Tax Credit Provisions Concerning Prevailing Wage and Apprenticeship Requirements

Production Tax Credit (Sec. 13101): This provision provides taxpayers the option of a base credit rate of 0.5 cents/kilowatt hour, or a bonus credit rate of 2.5 cents/kilowatt hour (inflation adjusted values) for those facilities that meet the prevailing wage and apprenticeship requirements.

  • To claim the credit at the bonus credit rate, taxpayers must satisfy the prevailing wage requirements for the duration of the construction of the project and for each year during the 10-year credit period and apprenticeship requirements during the construction of the project.

Investment Tax Credit (Sec. 13102): This provisions allows taxpayers to claim a tax credit for the cost of energy property with a base credit rate of 2 or 6% of the basis of energy property or a bonus credit rate of 10 or 30% of the basis of energy property.

  • To claim the ITC at the bonus credit rate, taxpayers must satisfy the prevailing wage requirements for the duration of the construction of the project and for five years after the project is placed into service and must meet the apprenticeship requirements during the construction of the project.

Carbon Oxide Sequestration (Sec. 13104): This provision provides a 5X bonus credit rate of $85 per metric ton of carbon oxide captured and sequestered in geological storage and a 5X bonus credit rate of $60 per metric ton of carbon oxide captured and utilized in an enhanced oil recovery project or for a commercial use that results in permanent sequestration.

  • The provision also provides an enhanced credit for direct air capture facilities at a base rate of $36 or a bonus rate of $180 per metric ton of carbon oxide captured for geological storage and a base rate of $26 or a bonus rate of $130 per metric ton of carbon captured and utilized for an allowable use by the taxpayer.
  • To claim credit at the bonus rate, taxpayers must satisfy the prevailing wage requirement during the construction of the project and for each year during the 12-year credit period and satisfy the apprenticeship requirement during the construction of the project.

Zero-emission nuclear power production credit (Sec. 13105): The provision provides a base credit rate of 0.3 cents/kilowatt hour and a bonus credit rate of 1.5 cents/kilowatt hour for electricity produced by the taxpayer and sold to an unrelated person during the taxable year.

  • To claim the PTC at the bonus credit rate, taxpayers must satisfy prevailing wage requirements for the taxable year.

Clean hydrogen production credit (Sec. 13204): This provision creates a new tax credit for the production of clean hydrogen. The credit is equal to the applicable percentage of the base rate of $0.60 or the bonus rate of $3.00, indexed to inflation, multiplied by the volume (in kilograms) of clean hydrogen produced by the taxpayer at a qualified facility during the taxable year.

  • To claim the hydrogen production credit at the bonus credit rate, taxpayers must satisfy the prevailing wage requirements for the duration of the construction of the project and for each year during the 10-year credit period and satisfy the apprenticeship requirements during the construction of the project.

Energy efficient commercial buildings deduction (Sec. 13303): To receive the 5X bonus deduction of $2.50 per square foot, increased by $0.10 per square foot for every percentage point by which designed energy cost savings exceed 25% against the reference standard, not to exceed $5.00 per square foot, taxpayers must satisfy prevailing wage and apprenticeship requirements for the duration of the construction of the project.

  • This provision also allows taxpayers to elect to take an alternative, parallel deduction for energy efficient lighting, HVAC and building envelope costs placed into service in connection with a qualified retrofit plan.

New energy efficient home credit (Sec. 13304): To receive a 5X bonus credit of $5,000 for eligible multifamily units certified as a zero energy ready under the Department of Energy Zero Energy Ready Home Program, taxpayers must satisfy prevailing wage requirements for the duration of the construction of such units.

Alternative fuel refueling property credit (Sec. 13404): To receive a 5X bonus credit level of 30% for expenses up to $100,000 for each charging station or refueling pump installed, with respect to eligible property, taxpayers must satisfy prevailing wage requirements for the duration of the construction of such property.

Extension of the Advanced Energy Project Credit (Sec. 13501): To receive a 5X bonus rate of 30%, taxpayers must satisfy the prevailing wage requirements for the establishment, expansion or re-equipping of a manufacturing facility and for five years after the project is placed into service, and satisfy the apprenticeship requirements during the construction of the project

Clean Electricity Production Credit (Sec. 13701) & Clean Electricity Investment Credit (Sec. 13702): Taxpayers who pay wages at not less than local prevailing rates and utilize registered apprenticeship programs are eligible to receive 5X elevated credits of 2.5 cents per kilowatt hour or 30%. The prevailing wage and apprenticeship provisions apply in the same manner as for the section 45 PTC and section 48 ITC.

Clean Fuel Production Credit (Sec. 13704): Taxpayers who pay wages at not less than local prevailing rates and utilize registered apprenticeship programs are eligible for 5X elevated credit rates of $1.00 per gallon ($1.75 in the case of aviation fuel).

Expect additional updates on this topic this year.

If you have questions, please contact Peter Comstock or Ben Brubeck with ABC’s Government Affairs team.​​​​​​​

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Democrats’ Reconciliation Package Passes House, Will Be Signed Into Law

House Democrats passed the Senate-approved $740 billion reconciliation package, the Inflation Reduction Act, by a 220-207 strictly partisan vote on Aug. 12. Ahead of the House vote, ABC issued a key vote against House passage, highlighting a critical change from the Senate process—a Democrat-approved amendment, offered by Sen. Mark Warner, D-Va., that would extend limits on pass-through business losses that can be used to reduce other taxable income. This $52 billion tax increase on pass-through businesses is particularly harmful while the economy is struggling and an increasing number of businesses are suffering losses.

ABC issued a release following the passage of the bill, which will be signed into law by President Biden. “Democratic lawmakers now own the consequences of sending this radical bill to the president’s desk, including potential economic fallout, additional inflation, more workforce shortages and high materials prices that we could see in the near future,” said Kristen Swearingen, ABC vice president of legislative & political affairs. “It imposes anti-growth tax policies and injects hundreds of billions of federal dollars into the economy at a time when we are facing record-high inflation.”

ABC also joined a coalition of small business organizations in opposing the legislation’s harmful tax provisions.

The bill also maintains an unprecedented expansion of Davis-Bacon and government-registered apprenticeship requirements, with the soon-to-be new law providing an increased tax credit for private employers that impose Davis-Bacon prevailing wage requirements and government-registered apprenticeship labor-hour quotas ranging from 10% to 15% of total labor hours, depending on the year of qualifying construction energy projects.

With the new bill being signed into law, Axios has published a timeline of when the IRA’s major provisions go into effect.

 

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