WASHINGTON, Nov. 29—Associated Builders and Contractors released the following statement responding to guidance released today by the U.S. Treasury Department and Internal Revenue Service regarding tax credits for private clean energy projects funded by the Inflation Reduction Act conditioned on compliance with prevailing wage and government-registered apprenticeship requirements.
“While we are still thoroughly assessing the IRS’ guidance and FAQs, so far, it appears several of the questions ABC raised in our Nov. 4 comments are not addressed,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “IRS says it will issue additional proposed regulations with respect to these requirements in the coming months and there are more questions that need to be answered between now and when this rule goes into effect in roughly 60 days.
“Developers, taxpayers, contractors and subcontractors need clear and specific guidance on how these new provisions will be implemented so developers can decide whether the tax credits are worth the significant risks and penalties, and large and small business contractors and subcontractors can decide whether to bid on and perform such work,” said Brubeck. “Today, this administration did not provide that clear guidance, which is likely to prevent stakeholders from taking full advantage of the tax credits and slow down clean energy infrastructure development.
“Regardless, the IRA’s unprecedented expansion of anti-competitive prevailing wage and apprenticeship requirements through the federal tax code onto private clean energy projects is likely to disrupt the marketplace of contractors who successfully and safely build solar, wind, electric vehicle charging stations and other clean energy projects across America,” said Brubeck. “These new policies may result in fewer clean energy construction projects and less private investment, which would undermine President Biden’s goals of creating well-paying, middle-class jobs across America while reducing carbon emissions.”