The Inflation Reduction Act’s (IRA) prevailing wage and apprenticeship rules are arguably the richest clean energy incentives in the statute, designed to ensure that the hundreds of gigawatts of clean energy capacity projected to come online in the next decade are built by American workers earning good wages while training the next generation of solar and storage professionals. In order to receive full value of the 30% base and 10% bonus tax credit for solar and storage projects above 1 MW in size, new projects must meet the IRA’s prevailing wage and registered apprenticeship requirements.

On June 25, 2024, the IRS released final rules on how projects can qualify for the full 30% investment tax credit for solar and storage projects that pay workers prevailing wages and meet apprenticeship requirements. The final rules include a number of clarifications, updates, and changes that taxpayers, owners, developers, EPCs, and subcontractors should be aware of.