Guidance on wage and apprenticeship requirements for projects using clean energy tax credits has been released by the US treasury department.
Under the Inflation Reduction Act (IRA), wind projects can receive up to five times the baseline value of tax credits if they meet prevailing wage and apprenticeship requirements.
The treasury said it would offer leeway if projects underpay, allowing them to catch up. Penalties will be waived for companies paying less than a prevailing wage as long as they correct the error within 30 days, or before they apply for a tax credit.
There is a “good faith” waiver if companies cannot hire apprentices in their local area.
American Clean Power Association CEO Jason Grumet welcomed the detailed guidance: “The newly proposed rules will go a long way to providing more certainty for clean energy developers on how to satisfy the labour requirements and, in turn, help to recruit, train, and deploy highly skilled, well-paid American workers for this critical mission.”
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