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being performed. The prevailing wage To satisfy the apprenticeship labor Recordkeeping requirements
published by the Labor Department’s hour requirements, apprentices em- for prevailing wage and
Wage and Hour Division can be found ployed by the taxpayer must work a cer- apprenticeship compliance
in the Wage Determinations section of tain percentage of the total labor hours With respect to the prevailing wage re-
the website of the federal System for depending on when construction of a quirement, the notice requires a taxpayer
Award Management. qualified facility began. For this purpose, to maintain records sufficient to estab-
If the prevailing wage rates for a par- total labor hours exclude any hours lish that laborers and mechanics em-
ticular locality have not been published, worked by foremen, superintendents, ployed by the taxpayer and the taxpayer’s
the taxpayer is encouraged to request a owners, or persons employed in a bona contractor(s) and subcontractor(s) were
wage determination by emailing the Wage fide executive, administrative, or profes- paid wages no less than the prevailing
and Hour Division, providing the follow- sional capacity. The relevant percentages wage rate of the locality where the work
ing information: (1) the type of facility; of total labor hours are: was performed. Sufficient records may
(2) facility location; (3) proposed labor ■ Construction began before Jan. 1, include, but are not limited to, identify-
classifications; (4) proposed prevailing 2023: 10%; ing the applicable wage determina-

wage rates; (5) job descriptions and duties; ■ Construction began or begins tion, the laborers and mechanics who
and (6) any rationale for the proposed after Dec. 31, 2022, and before Jan. 1, performed construction work on the
classifications. If applicable, prevail- 2024: 12.5%; and facility, the classifications of work they
ing wages must be paid to laborers and ■ Construction begins after Dec. 31, performed, their hours worked in each
mechanics working on the construction, 2023: 15%. classification, and the wage rates paid for
alteration, or repair of a facility or project Notably, the labor hour requirements the work.
regardless of whether the laborer or me- are subject to any applicable require- With respect to the apprenticeship
chanic is employed by the taxpayer or its ments for apprentice-to-journey worker requirement, the notice also requires
contractor or subcontractor. ratios established by the Labor Depart- taxpayers to maintain records evidenc-
ment or an applicable state apprentice- ing that the apprenticeship labor hour
The apprenticeship requirement ship agency. and the apprenticeship participation
A qualified apprentice is an individual To satisfy the apprenticeship requirements have been met. As further
employed by the taxpayer, contractor, or participation requirement, taxpayers, explained in the notice, taxpayers would
subcontractor who is participating in an contractors, or subcontractors with four need to keep records demonstrating that
apprenticeship program registered under or more workers employed to perform the apprentice-to-journey worker ratio
the National Apprenticeship Act of 1937, construction, alteration, or repair work of the registered apprenticeship program
as amended (see Sec. 3131(e)(3)(B)). of a facility or project must employ one was met on each day that an apprentice
Registered apprenticeship programs are or more qualified apprentices to perform was working; that the apprentice labor
approved and validated by the Labor De- such work (see Sec. 45(b)(8)(C)). hours for construction, alteration, or
partment or a state apprenticeship agency, repair were met; and that the apprentice
signaling the program meets national Good-faith effort exception participation requirements were met.
standards for quality and rigor. Upon In the event a taxpayer makes a good- Notably, as previously mentioned,
graduating, apprentices are distinguished faith effort to meet the apprenticeship taxpayers intending to rely on the good-
with a national credential as they seek requirements but ultimately does not faith effort exception with respect to
new employment. meet them, the taxpayer could still be the apprenticeship requirements need to
Generally, the apprenticeship require- deemed to have met the apprenticeship keep records reflecting those good-faith
ments of the Inflation Reduction Act requirements by satisfying the “good- efforts, such as documents showing
comprise the following: (1) the appren- faith effort” exception. A taxpayer will the requests for apprentices and the
ticeship labor hour requirements, subject be considered to have made a good-faith response, if any, from the registered ap-
to any applicable apprenticeship ratio effort in requesting qualified apprentices prenticeship program.
requirements; (2) apprenticeship par- if it requests them from a registered
ticipation requirements; and (3) general apprenticeship program. The taxpayer More clarity with regulations
recordkeeping requirements to establish must maintain records establishing that likely to follow
that the apprenticeship labor hour and the it requested qualified apprentices from Taxpayers wishing to take advantage
apprenticeship participation requirements a registered apprenticeship program, of the new bonus clean energy tax
have been satisfied (see §2.01(3) of Notice along with the program’s denial or non- credit rates must ensure that both the
2022-61 and Sec. 45(b)(8)(A)(i)). response to that request. prevailing wage and apprenticeship

8 April 2023 The Tax Adviser