Companies Craft Contracts Absent Firm Clean Energy Labor Rules

Many of the lucrative clean energy tax credits from President Joe Biden’s tax-and-climate law hinge on labor requirements that still lack any regulations.

The Inflation Reduction Act of 2022 ties labor mandates to the clean energy tax credits, increasing the credit amount to 30% from 6% of project costs if companies pay workers the local prevailing wage and employ some workers who participated in a Department of Labor-registered apprenticeship program.

The IRS and Treasury Department first released guidance on the labor requirements Nov. 29, detailing when and how to apply the rules. The guidance, though, left some unanswered questions that ...