The Department of Labor (DOL) has published new final rules for setting prevailing wages on infrastructure projects that receive federal funding. The new rules will also affect energy credit projects, as the Inflation Reduction Act only offers full credit rates for many projects if they comply with corollary prevailing wage and apprenticeship requirements.
The IRS rules on prevailing wages lean heavily on DOL rules and designations. See our prior story for more information.
The new DOL guidance could raise prevailing wages by providing that they can be based on a wage amount equivalent to what is normally paid to only 30% of workers in a locality rather than 50%. The rules also give more leeway to update prevailing wages based on state and local government information and when insufficient data is available from wage surveys.
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