On May 18, the Senate Committee on Finance held a hearing on “Tax Incentives in the Inflation Reduction Act.” ABC submitted a statement for the record to the committee highlighting concerns with the burdensome and discriminatory prevailing wage and apprenticeship requirements that will limit opportunities for many construction apprentices in nonregistered programs and place a strain on developers and contractors grappling with a shortage of more than 500,000 workers in the construction industry. You can read the full letter here.

On May 12, the U.S. Department of the Treasury and Internal Revenue Service also released additional guidance on the IRA’s domestic content bonus tax credits. The May 12 guidance states that taxpayers may receive another 10% tax credit increase for meeting domestic content requirements. All steel and iron on a project must be 100% produced in the United States to meet this requirement. Additionally, between 40% to 55%, depending on project type and the year construction begins, of the total cost of other components and subcomponents used on the project must be attributable to components that are mined, produced or manufactured in the United States in order to receive this bonus. The IRS previously requested comments on these requirements, and ABC provided feedback regarding industry concerns about supply chain issues and cost increases that may be caused by these domestic content requirements in comments to Treasury and the IRS.