Inflation Reduction Act Tax Credit Resource Center

Beginning January 29, 2023, certain construction projects that promote energy efficiency and clean energy production will qualify for substantially larger tax credits if they are done by contractors that employ apprentices from a registered program and pay prevailing wage. These enhanced incentives will provide a significant competitive advantage to signatory contractors with existing relationships with unions and experience complying with prevailing wage and apprenticeship standards.



Many tax credit enhancements are only available to facilities owners utilizing contractors that comply with the following requirements. We expect the federal government to issue more rules outlining specific compliance requirements. Please check back regularly for updates.

Wages: Owners must hire contractors that pay prevailing wage to their employees on the project, consistent with the Davis Bacon Act requirements (40 USC 31)
Apprenticeship: Owners must hire contractors that employ apprentices enrolled in a registered apprenticeship program, and meet the following thresholds:

  • Percentage of Apprentices Hours on Project: 10-15% of total labor hours worked;
    • 10% for construction beginning before January 1, 2023;
    • 12.5% for construction beginning before January 1, 2024; and
  • Apprentice to Journeyman Ratio: Ratio approved by Department of Labor or applicable state apprenticeship agencies
  • Attachment of Requirements: Any contractor with at least four employees must employ at least one apprentice
  • Good Faith Exception: If contractor seeks apprentice from a qualified program and is denied or the program fails to respond within five days.