Topic: IRA labor requirements, prevailing wage, and apprenticeship requirements
Other Speakers
Heather Barron: Counsel in Tax Practice, New York
Alex: Counsel in Labor and Employment Group
Expert in prevailing wage and DBA contracts
Experience in EPC and supply contracts, record-keeping forms, and labor requirement diligence
IRA Overview
Most sweeping climate legislation in the U.S.
Focus: Building a skilled, highly-trained, and well-paid domestic workforce in energy transition
Credit Rate Requirements
Full credit rate requires meeting prevailing wage and apprenticeship requirements
Example: Full 30% ITC (Investment Tax Credit) requires these conditions; otherwise, only 20% credit available
Exceptions: Small projects (max 1 MW) and projects beginning construction before Jan 29, 2023
Beginning Construction
Defined as beginning physical work of significant nature or meeting a 5% safe harbor
Prevailing Wage and Apprenticeship Requirements
Prevailing Wage Requirements: Pay prevailing wages to laborers and mechanics during construction, alteration, and repair before service and during the credit period
Apprenticeship Requirements:
Minimum number of apprentices must be used
Focus on ensuring skill development
Record Keeping: Essential for compliance and avoiding penalties
Proposed Regulations (August 29)
Details on IRA requirements but questions remain
Comments open until October 30
Prevailing Wages
Defined by the Department of Labor for compliance with the Davis Bacon Act
Vary by job category and locality
Include cash amount and fringe benefits
Apprentice Requirements
Labor Hours Requirement: 10-15% of labor hours by apprentices based on project start
Ratio Requirement: Maintained daily for each job category
Participation Requirement: Contractors with 4+ workers must employ at least one apprentice
Good Faith Efforts Exception
Requirements for requesting apprentices from programs
Repeated requests every 120 days if denied
Types of Work Covered
Construction, alteration, and repair by laborers and mechanics
Maintenance not covered
Site of Work
Defined by the DBA site of work concept
Includes secondary construction sites in modular construction context
Curing Mistakes
Paying differentials and penalties can cure prevailing wage and apprenticeship requirement failures
Comments on Proposed Regulations
Key issues include:
Apprentices during alteration/repair periods
Demonstrating good faith when no apprenticeship program is available
Record-keeping requirements
Practical Considerations
Contractor/subcontractor compliance flow-down
Collection and retention of records
Data privacy concerns
Warranty work and contractual remedies
Conclusion
Contact presenters for further questions and clarifications