The Internal Revenue Service (IRS) holds a public hearing on its proposed rule for the enhanced tax incentives under the Inflation Reduction Act (IRA) for projects that meet certain prevailing wage and apprenticeship standards. 

On November 21, the Internal Revenue Service (IRS) held a public hearing on its proposed rule for the enhanced tax incentives under the Inflation Reduction Act (IRA) for projects that meet certain prevailing wage and apprenticeship standards. At the end of October, AGC filed comments on the proposed rule, which will generally require contractors to both pay prevailing wage, and to either employ apprentices or make a good faith effort to obtain them, on projects that take advantage of tax incentives from the IRA.

In general, a number of speakers called for a simplified process for obtaining “pre-clearance” with the Department of the Treasury on projects before construction begins, and for eliminating the proposed rule’s significant incentive for the use of project labor agreements (PLAs), while speakers representing organized labor called for further incentives for PLAs, and for contractors to submit weekly certified payroll to the Treasury Department during construction of these projects.

If you have any questions, please contact Matthew Turkstra at [email protected], or (202) 547-4733.