Treasury Releases Final Rules for Energy Tax Credit Prevailing Wage, Apprenticeship Bonuses
The Inflation Reduction Act modified and extended many energy tax incentives used in residential construction, including requiring taxpayers to meet prevailing wage and/or apprenticeship requirements in order to claim the full value of the tax credit. The Treasury Department and Internal Revenue Service (IRS) have now released final regulations on these labor requirements.
To claim the full credit amount for certain incentives, taxpayers are required to pay workers the “prevailing wage,” and in other cases, also hire a certain number of registered apprentices.
The prevailing wage requirements apply to multifamily projects claiming the Section 45L New Energy Efficient Home Tax Credit.
The prevailing wage and apprenticeship requirements apply to the Section 45 Production Tax Credit, the Section 48 Investment Tax Credit, and the Section 179D Energy Efficient Commercial Buildings Deduction, among others.
In 2022, based on initial guidance from the IRS, the Department of Labor issued two Frequently Asked Question (FAQ) documents to help taxpayers comply with these requirements: one on prevailing wage and the other on apprenticeships. These webpages now note the FAQs will be updated soon to reflect changes in the final regulations.
Latest from NAHBNow
Advocacy
Oct 02, 2026
Stay on Message: Access NAHBs Latest Housing Talking Points
The monthly update provides talking points to help members stay informed with clear and consistent messages on issues affecting the residential construction industry.
Fall Leadership Meeting
Oct 02, 2026
Watch Livestreams of Key Fall Leadership Meetings
NAHB leadership will gather Oct. 6-8 for the 2026 Fall Leadership Meeting in Detroit. Members and HBA staff not in attendance can view livestreams of the key meetings.
Latest Economic News
Economics
Oct 02, 2026
U.S. Economy Adds 29,000 Jobs in September as Prior Months Are Revised Down
The U.S. labor market cooled in September, with nonfarm payroll employment increasing by just 29,000 as downward revisions erased most of August’s previously reported strength. The unemployment rate edged up to 4.2%, as both employment and the labor force continued to grow.
Economics
Oct 01, 2026
Private Residential Construction Spending Posts Broad-Based Gains in August
Private residential construction spending rose in August 2026 following a series of declines during the second quarter of the year. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $882.3 billion in August, up 1.1% from July but down 4.8% from a year ago.
Economics
Oct 01, 2026
AI Exposure Remains Relatively Low Across Most Construction Occupations
Artificial intelligence (AI) is rapidly changing how work gets done, but its impact varies considerably across occupations. For most construction occupations, near-term exposure to AI remains relatively low.