On June 18, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) finalized rules regarding prevailing wage and registered apprenticeship (PWA) requirements under the Inflation Reduction Act. These rules aim to provide clarity and guidance to developers of clean energy projects, enabling them to claim increased tax credits by paying prevailing wages to laborers, mechanics, and hiring registered apprentices. The rules, developed after considering over 300 public comments, are set to be effective 60 days after publication. Projects supported by the Act's clean energy tax incentives, including wind, solar, battery storage, carbon capture, utilization, storage, and clean hydrogen projects, can qualify for increased credits equal to five times the base incentive if wage and apprenticeship criteria are met. The final rules specify exceptions, such as for small clean energy facilities and projects initiated before January 29, 2023, where taxpayers can claim the quintuple increase without fulfilling all requirements. Additionally, determinations of prevailing wage rates will be made by the Department of Labor, recordkeeping requirements will be strengthened, and penalties exempted for projects under qualifying project labor agreements. To ensure compliance, the IRS, along with the Department of Labor, is working on a memorandum of understanding aimed at facilitating collaboration on education and enforcement of the PWA requirements under the Inflation Reduction Act. Duane Morris, a legal firm experienced in energy industry matters, assists companies in understanding and adhering to these regulations, helping them navigate tax credits and compliance issues.