12.3.2024
IRA: prevailing wage and apprenticeship requirements to boost tax credits for sustainable energy projects
Market and policy
In the U.S., under the Inflation Reduction Act, taxpayers who meet prevailing wage and apprenticeship requirements can significantly increase their tax credits. For instance, complying with these conditions raises the base rate of the investment tax credit from 6% to 30% and can increase total credits from 8% to 40%. Eligible incentives include credits for clean energy production, hydrogen, carbon capture, and more. This framework promotes adherence to labor standards while advancing sustainable energy projects.
Original language: English
Origin: USA
Speaker
Sara Hutton
Senior Manager, Tax Services, RSM U.S.
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