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24-HR Emergency Service: 1-800-300-4875
July 19, 2023
The U.S. Department of the Treasury plans to release a proposed rule implementing provisions of the ABC-opposed Inflation Reduction Act. The law provides over $270 billion in tax credits for the construction of solar, wind, hydrogen, carbon sequestration, electric vehicle charging stations and other clean energy projects, conditioned on requirements that project contractors meet prevailing wage and apprenticeship requirements outlined in the legislation and IRS guidance.
Treasury is expected to issue a proposed rule to provide additional guidance on these requirements imminently.
“Unfortunately, the U.S. Treasury’s announcement of a formal rulemaking means more uncertainty for contractors, developers and financers of clean energy projects who have raised important questions in reaction to the inadequate initial guidance required by the Inflation Reduction Act published late last year and effective Jan. 30, 2023,” said Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs. “It may take more than a year for the IRS to complete its formal rulemaking notice-and-comment process, which will create additional risks for stakeholders in the interim, and ultimately, stall clean energy projects dependent on the full tax credits previously available to this marketplace without the apprenticeship and prevailing wage policy requirements.”
As additional information becomes available, it will be added to ABC’s IRA Resources and Guidance for Contractors and Developers available at www.abc.org/ira.
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