Update on the Tax Credit Revolution: Prevailing Wage and Apprenticeship Clock Starts Soon
U.S. Energy, Infrastructure, and Resources Alert
By: Elizabeth C. Crouse, Craig E. Leen
The U.S. Treasury Department released a preliminary draft of Notice 2022-61 (the Notice) on 29 November 2022 and the final on 30 November 2022. Taxpayers now have 59 days to begin construction on qualified projects without causing those projects to be subject to the new prevailing wage and apprenticeship requirements. The U.S. Department of Labor also released companion FAQs on the prevailing wage and apprenticeship rules 29 November 2022. The Notice generally applies to credits under Code Sections 30C (alternative fuel infrastructure), 45Y (post-2024 electricity PTC), 48E (post-2024 electricity ITC), 45V (hydrogen PTC), 45 (current electricity PTC), 48 (current electricity ITC), 45Q (carbon capture), 45L (energy efficient homes), 45U (zero-emission nuclear power), 48C (advanced energy manufacturing facilities), and 179D (energy efficient commercial buildings), but the beginning of construction rules apply more narrowly.
For further details, please see the following Alert that discusses some of the main points in the Treasury and Labor guidance that was released.