KPMG report: Proposed regulations on prevailing wage and apprenticeship requirements under clean energy tax incentives
Initial observations on the significant provisions of these new proposed regulations
Initial observations on the significant provisions of these new proposed regulations
The U.S. Treasury Department and IRS on August 29, 2023, released proposed regulations regarding the rules relating to qualifying for increased credit or deduction amounts available for taxpayers satisfying prevailing wage and registered apprenticeship (PWA) requirements established by H.R. 5376 (commonly called the “Inflation Reduction Act of 2022” (IRA)). Read TaxNewsFlash
The IRA provides increased credit or deduction amounts that generally apply for taxpayers who satisfy certain PWA requirements regarding the construction, installation, alteration or repair of a qualified facility, qualified property, qualified project, qualified equipment or for certain energy facilities. The increased credit or deduction amount is generally equal to the base amount multiplied by five if the taxpayer satisfies the PWA requirements. The proposed regulations provide guidance on various aspects of the PWA requirements.
Read a September 2023 report [PDF 3.5 MB] prepared by KPMG LLP for initial observations on the significant provisions of these new proposed regulations.
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