Prevailing wage and apprenticeship requirements guidance issued

Proposed regulations (REG-100908-23) regarding increased credit or deduction amounts available for taxpayers satisfying prevailing wage and registered apprenticeship (PWA) requirements established by the Inflation Reduction Act of 2022, P.L. 117-169, were issued Wednesday by the IRS. Generally, these new proposed rules provide guidance on the PWA requirements for certain green energy facilities or projects.

The proposed regulations would provide guidance to taxpayers intending to claim the increased credit or deduction amounts and those intending to transfer increased credit amounts. They also provide guidance for taxpayers that initially fail to satisfy the PWA requirements but seek to cure the failure by complying with certain correction and penalty procedures. Also, the proposed regulations would provide rules concerning specific PWA recordkeeping and reporting requirements.

Taxpayers affected by the proposed regulations would be those intending to claim increased credit or deduction amounts pursuant to the IRA, including taxpayers intending to make elective payment elections for available credit amounts, and taxpayers intending to transfer increased credit amounts.

In addition to the proposed regulations, the IRS released frequently asked questions and Publication 5855, Prevailing Wage & Registered Apprenticeship Overview.

The deadline for comments is Oct. 30 with a public hearing scheduled for Nov. 21.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.