Month: December 2022

Treasury Department Prevailing Wage and Apprenticeship Guidance

Treasury Department Prevailing Wage and Apprenticeship Guidance

The US Treasury Department Prevailing Wage and Apprenticeship Guidance to Impact Labor Costs for Large-Scale Solar Projects in 2023

The US Treasury Department recently announced guidance regarding the Inflation Reduction Act’s labor protections that businesses must meet to qualify for the complete 30% Solar Investment Tax Credit (ITC). For solar projects beginning on or after January 29, 2023, solar contractors must use Prevailing Wage Labor and documented apprentices on renewable energy projects 1MW and larger for clients to receive the maximum tax benefit. (Learn more.)

As a result of the new guidance, the labor cost of solar projects could increase substantially after January 29 for companies not following the new rules. Following the Treasury Department’s announcement, Advanced Green Technologies immediately began developing a plan to ensure its clients are eligible to receive the complete 30% ITC. As part of this plan, AGT is currently working with the Federal Department of Labor and the Florida Department of Education to create a world-class apprenticeship program which will be in place by the January 29 deadline. The program aims to fast-track the next generation of qualified Florida solar installers.

We are committed to making solar more accessible for commercial properties and non-profits in Florida, and the Solar Investment Tax Credit is a vital component in making this possible. If your organization is interested in renewable energy, contact us to discuss the new requirements on labor that can impact your solar project investment.

AGT is prepared to support these new requirements, and we stand ready to assist with a Safe Harbor strategy that will allow customers to lock in the full 30% Investment Tax Credit over the next 60 days before the new rules go into effect on January 29, 2022.

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