Prevailing Wage Requirements ensure that workers employed on qualifying clean energy projects are compensated fairly, aligning wage standards with local prevailing rates to promote equitable labor practices across the industry.
Prevailing wages must be paid to all laborers and mechanics employed by the taxpayer, contractor, or subcontractor in the construction, alteration, or repair of a facility. The requirement to pay prevailing wages applies to work performed with respect to a qualified facility (or qualified property, project, or equipment, as applicable) within the meaning of the relevant section of the Code. Prevailing wages must also be paid for construction, alteration, or repair work performed at any secondary work site where such work is for specific use at the qualified facility and does not reflect the manufacture or construction of a product made available to the general public and the secondary work site is established specifically for or dedicated exclusively for a specific period of time to the construction, alteration, or repair of the facility. The prevailing wage rates for work performed at any secondary work site is determined based on the geographic area in which the secondary site is located.
Laborers and mechanics are those individuals whose duties are manual or physical in nature (including those individuals who use tools or who are performing the work of a trade). The terms laborer and mechanic include apprentices and helpers. The terms do not include individuals whose duties are primarily administrative, executive, or clerical, rather than manual.
Yes. Unless an exception applies, taxpayers that are seeking an increased credit or deduction amount must ensure that laborers and mechanics employed by the taxpayer, contractor, or subcontractor in the construction, alteration, or repair of a facility are paid prevailing wages (wages at rates that are not less than the prevailing rates determined by the Department of Labor in accordance with the Davis-Bacon Act).
