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𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗔𝗰𝘁 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 (𝗜𝗥𝗔) 𝗘𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝗦𝗼𝗼𝗻 According to the Treasury, developers who comply with the Inflation Reduction Act’s prevailing wage and apprenticeship (PWA) requirements for the construction, alteration, or repair of certain clean energy facilities or projects can significantly increase their tax credits or deductions, potentially by five times the base amount. An agreement is expected by the end of 2024. 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: IRA Tax Credit Requirements: ·       Developers must ensure laborers and mechanics are paid prevailing wage rates. ·       Employ qualified apprentices from registered programs. ·       Meet specific recordkeeping and reporting requirements. Good Faith Exception: ·       Developers qualify if apprentices are requested but denied or no response within five business days. Penalty Payment Option: ·       If exception doesn’t apply, developers can make a penalty payment to the IRS to satisfy requirements. Labor Shortages Impact: ·       Renewable energy industry faces labor shortages, making these aspects of the guidance crucial. Intentional Disregard Penalty: ·       Increased fee for developers who intentionally disregard PWA requirements. IRS and Labor Department MOU: ·       Memorandum of understanding by end of the year for cooperative education and public outreach. Clarification on Apprenticeship Requirements: ·       Requirements don’t apply after a facility is placed in service or to work performed before January 2023. Davis-Bacon Act (DBA) Rules: ·       PWA rules apply once construction starts under DBA definitions, not tax purposes. ·       Significant differences between DBA regulations and general tax administration. Treasury Department's Role: ·       Provides regulations and certainty needed for IRA implementation. Recommended Reading: For further insights and detailed information, check out the sources IRS, Davis-Bacon Act, and industry analyses on Dive. #InflationReductionAct #RenewableEnergy #CleanEnergy

Exciting changes are on the horizon for the construction industry with the 2024 updates to the Inflation Reduction Act (IRA)! These updates are set to transform the way we conduct construction projects, focusing on key areas such as: 🌱 Sustainability Standards: Projects must now meet strict energy efficiency and sustainable material usage criteria. 🔋 Clean Energy Integration: Encouraging the adoption of renewable energy sources in construction processes, offering businesses tax incentives and boosts in economic viability. 🏗️ Labor Requirements: Enhanced standards for prevailing wages and apprenticeship programs ensure a fair and skilled workforce. For construction businesses and professionals, these changes present both challenges and opportunities. It's crucial to stay informed and adapt strategies to meet these new mandates. Are you prepared for the shift towards more sustainable and equitable practices? Stay up to date with Pivla. Discover more about the IRA's mandate here: https://hubs.la/Q02QQwlv0 #Pivla #IRA #Sustainability #PrevailingWage #Apprenticeship #Construction #Labor

🌿💼 Listen up clean energy…final rules on prevailing wage and registered apprenticeship requirements as part of the IRA are in! The U.S. Treasury and IRS have released final rules on prevailing wage (the average wage paid to similarly employed workers in a specific occupation within a particular geographic area) and registered apprenticeship requirements as part of the Inflation Reduction Act. This is a game-changer for our workforce and the future of clean energy jobs. Key takeaways: 1. Since 2022, clean energy projects have projected the creation of over 270,000 jobs, with an estimated 1.5 million more in the next decade. 2. The rules ensure that clean energy jobs are good-paying jobs, supporting the growth of a highly-skilled workforce. 3. Taxpayers can claim increased credits (5x the base incentive) for paying prevailing wages and hiring registered apprentices. 4. This initiative spans various clean energy sectors, including wind, solar, battery storage, and more. 5. The IRS is prioritizing compliance enforcement, demonstrating a commitment to these standards. I'm thrilled to see policies that prioritize both environmental sustainability and worker well-being. This is a prime example of how we can align economic growth with social responsibility. However, I understand that higher wages means employers will have to make choices about when—and with whom—to invest. What are your thoughts on these developments? How do you see this impacting the future of work in the clean energy sector? #cleanenergyjobs #workforcefevelopment #inflationreductionact #sustainablefuture https://lnkd.in/gRHwtZ8X

Some great tips here when considering taking on #apprentices from Georgia Cowen and Ian Goodwin #NAW2024 #compliance

Good summary of how contractors can help developers & owners qualify for 30% energy tax credits under the IRA - by meeting prevailing wage and apprenticeship requirements #construction #taxcredits https://lnkd.in/guMWWcQn

The Department of the Treasury and the Internal Revenue Service issued final regulations on the prevailing wage and apprenticeship (PWA) requirements related to increased credit or deduction amounts for certain clean energy incentives, enacted as a part of the Inflation Reduction Act (IRA). #ira #irs #irsupdates #accounting #accountingfirms #cpa #outsourcing

#Employers -- as we head into the new year, it's worth recalling that the federal government has set its sights on non-compete agreements and training repayment provisions (TRP). At least with the #NLRB, we've been given a modicum of good news to kick off 2024. In two advice memos that were released earlier this week, the Division of Advice recommended that two Charges relating to the enforceability of a non-compete agreement and a TRP should be dismissed, absent withdrawal. In the first case, the non-compete would have barred the employee from working for a competing business within a five-mile radius of his former employer. In the other, the TRP would have required the employee to reimburse his employer for training costs should the employee fail to complete a four-year apprenticeship. To be fair, any celebrations ought to be tempered here; Advice recommended dismissal based on the lack of any other related meritorious allegations. What this suggests to me is that the Regions won't issue complaints that rely only on an allegation that a non-compete or TRP is unlawful. Rather, the non-compete/TRP piece will have to be bootstrapped to an otherwise allegedly meritorious complaint. Of course, the NLRB angle is only part of the analysis here, as several states have placed significant restrictions on restrictive covenants (to say nothing of the #FTC's saber rattling). So while these employers got a reprieve here, this bit of welcome news is not a complete let-off for employers. We've been following this issue closely and would be happy to chat.

The Treasury Department and the Internal Revenue Service recently issued final regulations concerning the prevailing wage and apprenticeship requirements. These requirements have significant implications for clean energy initiatives. Learn more about these regulations and key takeaways, including the application of PWA requirements to credits. #TaxLaw #PWARequirements #IRS #CleanEnergy #slotnicklaw #slotnick

🌟 Boost Your Savings with Clean Energy Incentives! 🌟 Attention all business owners and contractors! The IRS just rolled out final regulations on prevailing wage and apprenticeship (PWA) requirements, tied to increased credits or deductions for clean energy projects under the Inflation Reduction Act (IRA). Here's how you can benefit: 💰 Maximize Your Credit/Deduction: By meeting the PWA requirements, you can increase your credit or deduction by up to FIVE TIMES! Imagine the savings for your clean energy projects. 🔍 Key PWA Requirements: 1. Pay Prevailing Wages: Ensure laborers and mechanics are paid wages not less than the prevailing rates. 2. Hire Apprentices: Employ qualified apprentices from registered apprenticeship programs. 3. Keep Records: Maintain thorough recordkeeping and reporting. 🔧 Who Needs to Comply: All contractors and subcontractors involved in the construction, alteration, or repair work must meet these requirements. 🚀 Take Action Now: - Review Payroll Records: Regularly check and update to ensure compliance. - Contractor Agreements: Ensure all contracts stipulate adherence to PWA requirements. - Education & Training: Stay informed and train your team on PWA guidelines. - Report Mechanisms: Establish procedures for reporting and investigating non-compliance. 💡 Why It Matters: Non-compliance can lead to significant penalties. Proactively ensuring compliance not only maximizes your savings but also protects you from potential fines. 📧 Need Expert Help? Contact our COO Anshul Goyal at anshul@kkca.io for personalized assistance. Our team of licensed CPAs and Enrolled Agents will help you navigate these new regulations and maximize your benefits. Don’t miss out on this opportunity to boost your savings while supporting clean energy! Empower your business with these new incentives! 🌟 #CleanEnergy #TaxCredits #IRSUpdate #SustainableBusiness #TaxCompliance #GreenEnergy #PrevailingWage #Apprenticeship #IRAGuidelines #BusinessSavings

Via PV Mag: " A look at the prevailing wage and apprenticeship final rule: Taxpayers seeking to claim the highest available investment and/or production tax credits for renewable energy projects must comply with the prevailing wage and apprenticeship requirements. Nearly two years following passage of the Inflation Reduction Act of 2022 (IRA), Treasury and the IRS released the unpublished version of the final rule (Final Rule) for compliance with the IRA’s prevailing wage and apprenticeship requirements (PWA requirements). Taxpayers seeking to claim the highest available investment and/or production tax credits for renewable energy projects must comply with the PWA requirements. A taxpayer must ensure that laborers or mechanics employed by the taxpayer or any contractor or subcontractor in the construction, alteration, or repair of a qualifying facility comply with the PWA requirements. The Final Rule concludes the federal rulemaking process for the PWA requirements. (Note: The Final Rule is scheduled to be officially published on June 25, 2024, and therefore this article relies on the unpublished version.) The Final Rule will replace the previously-issued Notice of Proposed Rulemaking (released August 30, 2023) (NOPR), which replaced the Initial Guidance (released November 30, 2022). Overall, the Final Rule is generally consistent with the NOPR, providing helpful clarification on industry concerns raised in comments to the NOPR. However, the Final Rule expressly declines to address industry-specific concerns, emphasizing that determinations of compliance with PWA requirements will be made based upon specific facts and circumstances. It therefore leaves several questions open to interpretation, including whether commissioning work is subject to PWA requirements and to what extent certain post-operational work may be subject to PWA requirements. Clarifications First, with respect to when PWA requirements apply, the Final Rule provides two useful clarifications: Its supplementary information notes that “unrelated third party manufacturers who produce materials, supplies, equipment, and prefabricated components for multiple customers or the general public” are not subject to PWA requirements. In other words, most suppliers (absent performance of construction, alteration or repair on a project site) will not be subject to PWA requirements. It also clarifies that apprenticeship requirements only apply to the construction of a qualified facility, and do not apply to alteration or repair of a facility after the facility is placed in service. In other words, most operations and maintenance vendors will not be subject to apprenticeship requirements. Second, with respect to payment of prevailing wages, the Final Rule outlines regulations consistent with the NOPR: A taxpayer must ensure that laborers or mechanics employed by the taxpayer or any… " #EnergyStrorage #BatteryStorage #Energy