"Treasury and IRS Provide Guidance to Boost Clean Energy Jobs and Workforce Expansion"
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released proposed rules and FAQs on key provisions in the Inflation Reduction Act to ensure that clean energy jobs are well-paying and to expand the clean energy workforce. The prevailing wage and registered apprenticeship requirements of the Act apply to various clean energy deployment tax incentives, and if these requirements are met, taxpayers can claim enhanced credits or deductions. The proposed rules provide clarity and direction on compliance, incentivize worker-centric practices, and introduce new rules on correcting failures to meet the requirements. The guidance marks the completion of Phase 1 of the Treasury Department's implementation of the Act's clean energy provisions.