Treasury Releases Final Rules for Energy Tax Credit Prevailing Wage, Apprenticeship Bonuses
The Inflation Reduction Act modified and extended many energy tax incentives used in residential construction, including requiring taxpayers to meet prevailing wage and/or apprenticeship requirements in order to claim the full value of the tax credit. The Treasury Department and Internal Revenue Service (IRS) have now released final regulations on these labor requirements.
To claim the full credit amount for certain incentives, taxpayers are required to pay workers the “prevailing wage,” and in other cases, also hire a certain number of registered apprentices.
The prevailing wage requirements apply to multifamily projects claiming the Section 45L New Energy Efficient Home Tax Credit.
The prevailing wage and apprenticeship requirements apply to the Section 45 Production Tax Credit, the Section 48 Investment Tax Credit, and the Section 179D Energy Efficient Commercial Buildings Deduction, among others.
In 2022, based on initial guidance from the IRS, the Department of Labor issued two Frequently Asked Question (FAQ) documents to help taxpayers comply with these requirements: one on prevailing wage and the other on apprenticeships. These webpages now note the FAQs will be updated soon to reflect changes in the final regulations.
Latest from NAHBNow
Spring Leadership Meeting
Apr 25, 2025
Virtual Subcommittee Schedule Available for 2025 Spring Leadership MeetingNAHB’s Spring Leadership Meeting will be held in person from June 10-13 in Washington, D.C. Prior to this year’s meeting, subcommittee meetings will be held virtually beginning the week of May 5.
IBS
Apr 25, 2025
Builder of IBS 2025 Show Home to Share Insights in Live WebinarDan Coletti, owner of Sun West Custom Homes and the designer of the 2025 show home, will delve deeper into the design concepts and innovative techniques that defined The New American Home 2025.
Latest Economic News
Economics
Apr 23, 2025
New Home Sales Rise in MarchA modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions.
Economics
Apr 22, 2025
The Power of Women in the WorkforceOver the past 125 years, women have played a crucial and multifaceted role in the labor force. Increasing women’s participation in the workforce is not only essential for individual and family well-being, but also contributes significantly to overall labor force participation rates and economic growth by adding more workers and enhancing overall productivity.
Economics
Apr 21, 2025
Who Influences the Purchasing of Building Products?In a previous post, NAHB analyzed where builders and remodelers purchased products, regardless of who ultimately purchases them (themselves or subcontractors). In this post, the question shifts to who is most often responsible for the choice of particular products.