Get the Tax Benefits You Deserve Under the Inflation Reduction Act

moneyImage by FotoXCapture

The Treasury Department and Internal Revenue Service this week announced guidance providing taxpayers information on how to satisfy the prevailing wage and apprenticeship requirements for enhanced tax benefits under the Inflation Reduction Act. The guidance has been published in the Federal Register.

Notice 2022-61 explains how taxpayers – generally builders, developers, and owners of clean energy facilities – receive the increased tax credits or deduction amounts by satisfying the wage and apprenticeship requirements as provided for in the notice. For instance, the notice provides guidance on what constitutes a prevailing wage and the determination of qualified apprenticeships with accompanying examples.

The publication of this notice in Wednesday’s Federal Register begins the 60-day period in which taxpayers must begin construction of a facility (or installation under the rules for expensing energy-efficient commercial building property) to receive the enhanced tax benefits without satisfying the prevailing wage and apprenticeship requirements as described in this notice.

Finally, this notice provides guidance for determining the “beginning of construction” (and “installation” for purposes of the rules for deductions for the cost of energy-efficient commercial building property placed in service during the tax year).

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News.

READ:  Watch Out for ERC Scams: IRS Warns Businesses About Misleading Claims for Employee Retention Credit