How New Prevailing Wage and Apprenticeship Requirements Impact the Real Estate & Construction Industry
On January 29, 2023, new requirements for prevailing wage and apprenticeship, as outlined in the Inflation Reduction Act of 2022 (IRA), went into effect. These requirements aim to create good paying jobs in the clean energy space by offering enhanced tax credits to participating taxpayers.
The IRA is critical in providing good paying jobs through offering enhanced tax benefits for a range of clean energy and green energy projects to taxpayers. The Davis-Bacon Act ensures prevailing wages are paid to workers on such projects and that registered apprentices are utilized, in accordance with the IRA.
By pairing climate investment with creating good paying 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 related workforce training pathways.
Taxpayers that wish to take advantage of enhanced clean energy tax benefits must establish that all laborers and mechanics are paid the applicable prevailing wage, including fringe benefits, for all hours performing construction, and in some cases alteration or repair, on the site of a qualified facility.
Mark Cooter, Real Estate & Construction Leader, welcomes Ron Wainwright, Tax Credits & Incentives Advisory Partner, on Cherry Bekaert’s Real Estate and Construction podcast to learn more about prevailing wage and apprenticeship requirements.
On this podcast the team will unpack the background of the IRA and answer the following questions:
- What is a prevailing wage and how do you comply with it?
- How do the prevailing wage and apprenticeship requirements impact real estate and construction firms?
- When do prevailing wages need to be paid to qualify?
- To what types of facilities do prevailing wage and apprenticeship requirements apply?
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