The Department of the Treasury yesterday published a correction to Notice 2022-61 (the Notice), which contains guidance related to the prevailing wage and apprenticeship requirements applicable to the production tax credit (PTC) and investment tax credit (ITC) that were added as part of the Inflation Reduction Act of 2022. A summary of the Notice and its relevance to ITC and PTC qualification can be found here. The Notice started the 60-day time period to begin construction of a project so that the prevailing wage and apprenticeship requirements do not apply. The Notice, which was issued on November 30, 2022, incorrectly indicated that the 60th day following the Notice is January 30, 2023. The correction makes clear that the 60th day following the date the Notice was issued is January 29, 2023. Thus, to avoid the prevailing wage and apprenticeship requirements, construction of a project must begin on or before January 28, 2023 (the day before the 60th day).
Developers and investors wishing to avoid the prevailing wage and apprenticeship requirements should ensure that construction of a project begins on or before January 28, 2023. This can have a significant impact on the economics of a project and should be tracked carefully.
