On August 29, 2023, the Department of the Treasury and the Internal Revenue Service (IRS) released a Notice of Proposed Rulemaking (NPRM) on the prevailing wage and apprenticeship provisions of the Inflation Reduction Act. Some of the information on this webpage may be out of date but will be updated soon. More information about the proposed rule can be found here.

Informative

Overview

The Inflation Reduction Act (IRA) is delivering $270 billion in tax incentives as part of the $369 billion it dedicates to combating climate change. It will drive investment and economic growth, create new opportunities for workers by supporting prevailing wage jobs and Registered Apprenticeship programs in the energy industry and lower costs for America’s families as we build a clean energy economy.   

The IRA is by far our nation’s largest investment in clean energy solutions to date. By pairing climate investment with the creation of good jobs, the IRA’s unparalleled investments to fight the climate crisis will help improve job quality in clean energy industries and incentivize the expansion of workforce training pathways into these jobs, which will also help lift workers into the middle class.

The U.S. Department of Treasury issued guidance on the IRA's clean energy tax incentives, which is critical to creating good-paying jobs. Under the IRA, enhanced tax credits will be available to taxpayers that ensure Davis-Bacon Act prevailing wages are paid to workers and that registered apprentices are utilized for the construction of energy efficient commercial buildings and new energy efficient homes, electric vehicle (EV) charging infrastructure and other clean energy projects that improve our energy security and tackle the climate crisis.  

The Department of Labor’s Wage and Hour Division and Office of Apprenticeship will support the IRA’s prevailing wage and apprenticeship provisions. The IRA’s prevailing wage and apprenticeship provisions go into effect on Jan. 29, 60 days after the Department of the Treasury published guidance.

Learn More About Prevailing Wages and the IRA

For more information on complying with the IRA's prevailing wage provisions, please visit the Wage and Hour Divisions page on Prevailing Wage and the IRA.

Registered Apprenticeship Utilization Requirements

For more information on complying with the IRA's apprenticeship provisions, please visit the Office of Apprenticeships IRA Apprenticeship Resources page.

Resources

  • Department of Treasury IRA Tax Credit Guidance 
  • FAQ's about complying with the IRA’s prevailing wage provisions
  • FAQ's about complying with the IRA's Registered Apprenticeship provisions
  • Check out the U.S. Department of Labor's webinar on the apprenticeship and prevailing wage provisions contained in the Inflation Reduction Act and Treasury Guidance.