IRS Urged to Change Prevailing Wage Requirements for Tax Credits

Businesses looking to use clean-energy tax credits and labor group representatives packed an IRS hearing Tuesday to push the IRS to change proposed guidance on prevailing wage and apprenticeship requirements tied to the Inflation Reduction Act.

Speakers slammed the rules (REG-100908-23; RIN 1545-BQ54) for heaping on substantial burdens to companies, property owners, and contractors. They also said the rules penalize taxpayers seeking credit in good faith, but before the latest proposed rules came out.

Labor groups warned the rules left too many gaps for companies to abuse.

Among top concerns from industry was a requirement that facilities seeking clean ...