Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions, 73580-73585 [2022-26108]
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Federal Register / Vol. 87, No. 229 / Wednesday, November 30, 2022 / Notices
III. Public Participation
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Issued in Washington, DC.
James A. Hatt,
Designated Federal Officer, Commercial
Space Transportation Advisory Committee,
Federal Aviation Administration, Department
of Transportation.
[FR Doc. 2022–26078 Filed 11–29–22; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
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[2022–61]
Prevailing Wage and Apprenticeship
Initial Guidance Under Section
45(b)(6)(B)(ii) and Other Substantially
Similar Provisions
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of initial guidance.
AGENCY:
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This notice provides guidance
on the prevailing wage and
apprenticeship requirements that
generally apply to certain provisions of
the Internal Revenue Code (Code), as
amended by the Inflation Reduction Act
of 2022. This notice also serves as the
published guidance establishing the 60day period described in those
provisions of the Code with respect to
the applicability of the prevailing wage
and apprenticeship requirements.
Finally, this notice provides guidance
for determining the beginning of
construction of a facility for certain
credits allowed under the Code, and the
beginning of installation of certain
property with respect to the energy
efficient commercial buildings
deduction under the Code. This notice
affects facilities the construction of
which began, or certain property the
installation of which began, on or after
January 30, 2023. The Department of the
Treasury (Treasury Department) and the
IRS anticipate issuing proposed
regulations and other guidance with
respect to the prevailing wage and
apprenticeship requirements.
DATES: January 30, 2023 is the date that
is 60 days after the Secretary of the
Treasury or her delegate (Secretary)
publishes the guidance described in 26
U.S.C. 30C(g)(1)(C)(i), 45(b)(6)(B)(ii),
45Q(h)(2), 45V(e)(2)(A)(i),
45Y(a)(2)(B)(ii), 48(a)(9)(B)(ii),
48E(a)(2)(A)(ii)(II) and (a)(2)(B)(ii)(II),
and 179D(b)(3)(B)(i).
FOR FURTHER INFORMATION CONTACT:
Alexander Scott, CC:PSI:6, Internal
Revenue Service, 1111 Constitution
Avenue NW, Washington, DC 20224, at
(202) 317–6853 (not a toll-free call).
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Section 1. Purpose
Public Law 117–169, 136 Stat. 1818
(August 16, 2022), commonly known as
the Inflation Reduction Act of 2022
(IRA), amended §§ 30C, 45, 45L, 45Q,
45U, 45V, 45Y, 45Z, 48, 48C, 48E, and
179D of the Internal Revenue Code
(Code) to add prevailing wage and
apprenticeship requirements to qualify
for increased credit or deduction
amounts.1 This notice provides
guidance on the prevailing wage and
apprenticeship requirements that
generally apply to those sections of the
Code. This notice also serves as the
published guidance under
§§ 30C(g)(1)(C)(i), 45(b)(6)(B)(ii),
45Q(h)(2), 45V(e)(2)(A)(i),
45Y(a)(2)(B)(ii), 48(a)(9)(B)(ii),
1 See §§ 13101(f), 13102(k), 13104(d), 13105(a),
13204(a)(1), 13303(a)(1), 13304(d), 13404(d),
13501(a), 13701(a), 13702(a), and 13704(a) of the
IRA.
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48E(a)(2)(A)(ii)(II) and (a)(2)(B)(ii)(II),
and 179D(b)(3)(B)(i) establishing the 60day period described in such sections
with respect to the applicability of the
prevailing wage and apprenticeship
requirements. Finally, this notice
provides guidance for determining the
beginning of construction under §§ 30C,
45, 45Q, 45V, 45Y, 48, and 48E, and the
beginning of installation under § 179D
solely for purposes of § 179D(b)(3)(B)(i).
The Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) anticipate issuing
proposed regulations and other
guidance with respect to the prevailing
wage and apprenticeship requirements.
Section 2. Background
.01 Increased Tax Benefits For
Satisfying Certain Prevailing Wage and
Apprenticeship or Construction and
Installation Requirements.
(1) In General. Increased credit
amounts are available under §§ 30C, 45,
45Q, 45V, 45Y, 45Z, 48, 48C, and 48E,
and an increased deduction is available
under § 179D, for taxpayers satisfying
certain prevailing wage and
apprenticeship requirements. Increased
credit amounts are available under
§§ 45L and 45U for taxpayers satisfying
certain prevailing wage requirements.
The general concepts and provisions
relating to the increased tax benefits
under § 45(b)(6), (7), and (8) are similar
to those under each of these other Code
sections. Therefore, only the relevant
provisions under § 45(b)(6), (7), and (8)
are discussed in section 2.01(2) and (3)
of this notice.
(2) Prevailing Wage Requirements.
Section 45(b)(7)(A) provides that to
meet the prevailing wage requirements
with respect to any qualified facility, a
taxpayer must ensure that any laborers
and mechanics employed by the
taxpayer or any contractor or
subcontractor in: (i) the construction of
such facility, and (ii) the alteration or
repair of such facility (with respect to
any taxable year, for any portion of such
taxable year that is within the 10-year
period beginning on the date the
qualified facility is originally placed in
service), are paid wages at rates not less
than the prevailing rates for
construction, alteration, or repair of a
similar character in the locality in
which such facility is located as most
recently determined by the Secretary of
Labor, in accordance with subchapter IV
of chapter 31 of title 40, United States
Code (Prevailing Wage Rate
Requirements). Section 45(b)(7)(B)
provides correction and penalty
mechanisms for a taxpayer’s failure to
satisfy the requirements under
§ 45(b)(7)(A).
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(3) Apprenticeship Requirements.
Section 45(b)(8)(A)(i) provides that to
meet the apprenticeship requirements
taxpayers must ensure that, with respect
to the construction of any qualified
facility, not less than the applicable
percentage of the total labor hours of the
construction, alteration, or repair work
(including such work performed by any
contractor or subcontractor) with
respect to such facility is, subject to
§ 45(b)(8)(B), performed by qualified
apprentices (Apprenticeship Labor Hour
Requirements). Under § 45(b)(8)(A)(ii),
for purposes of § 45(b)(8)(A)(i), the
applicable percentage is: (i) in the case
of a qualified facility the construction of
which begins before January 1, 2023, 10
percent, (ii) in the case of a qualified
facility the construction of which begins
after December 31, 2022, and before
January 1, 2024, 12.5 percent, and (iii)
in the case of a qualified facility the
construction of which begins after
December 31, 2023, 15 percent.
Section 45(b)(8)(B) provides that the
requirement under § 45(b)(8)(A)(i) is
subject to any applicable requirements
for apprentice-to-journeyworker ratios
of the Department of Labor or the
applicable State Apprenticeship Agency
(Apprenticeship Ratio Requirements).
Section 45(b)(8)(C) provides that each
taxpayer, contractor, or subcontractor
who employs 4 or more individuals to
perform construction, alteration, or
repair work with respect to the
construction of a qualified facility must
employ 1 or more qualified apprentices
to perform such work (Apprenticeship
Participation Requirements).
Under § 45(b)(8)(D)(i), a taxpayer is
not treated as failing to satisfy the
requirements of § 45(b)(8) if: (i) the
taxpayer satisfies the requirements
described in § 45(b)(8)(D)(ii) (Good Faith
Effort Exception), or (ii) subject to
§ 45(b)(8)(D)(iii) (Intentional Disregard
Provision), in the case of any failure by
the taxpayer to satisfy the requirement
under § 45(b)(8)(A) and (C) with respect
to the construction, alteration, or repair
work on any qualified facility to which
§ 45(b)(8)(D)(i)(I) does not apply, the
taxpayer makes payment to the
Secretary of the Treasury or her delegate
(Secretary) of a penalty in an amount
equal to the product of $50 multiplied
by the total labor hours for which the
requirement described in § 45(b)(8)(A)
and (C) was not satisfied with respect to
the construction, alteration, or repair
work on such qualified facility.
Under the Good Faith Effort
Exception described in § 45(b)(8)(D)(ii),
a taxpayer is deemed to have satisfied
the apprenticeship requirements with
respect to a qualified facility if the
taxpayer has requested qualified
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apprentices from a registered
apprenticeship program, as defined in
§ 3131(e)(3)(B), and: (i) such request has
been denied, provided that such denial
is not the result of a refusal by the
taxpayer or any contractors or
subcontractors engaged in the
performance of construction, alteration,
or repair work with respect to such
qualified facility to comply with the
established standards and requirements
of the registered apprenticeship
program, or (ii) the registered
apprenticeship program fails to respond
to such request within 5 business days
after the date on which such registered
apprenticeship program received such
request.
Under the Intentional Disregard
Provision, if the Secretary determines
that any failure described in
§ 45(b)(8)(D)(i)(II) is due to intentional
disregard of the requirements under
§ 45(b)(8)(A) and (C), § 45(b)(8)(D)(i)(II)
is applied by substituting ‘‘$500’’ for
‘‘$50.’’
Under § 45(b)(8)(E)(i), the term ‘‘labor
hours’’ means the total number of hours
devoted to the performance of
construction, alteration, or repair work
by any individual employed by the
taxpayer or by any contractor or
subcontractor. This term excludes any
hours worked by foremen,
superintendents, owners, or persons
employed in a bona fide executive,
administrative, or professional capacity
(within the meaning of those terms in
part 541 of title 29, Code of Federal
Regulations).
Under § 45(b)(8)(E)(ii), the term
‘‘qualified apprentice’’ means an
individual who is employed by the
taxpayer or by any contractor or
subcontractor and who is participating
in a registered apprenticeship program,
as defined in § 3131(e)(3)(B).
Section 3131(e)(3)(B) defines a
registered apprenticeship program as an
apprenticeship registered under the Act
of August 16, 1937 (commonly known
as the National Apprenticeship Act, 50
Stat. 664, chapter 663, 29 U.S.C. 50 et
seq.) that meets the standards of subpart
A of part 29 and part 30 of title 29 of
the Code of Federal Regulations.2
.02 Beginning of Construction.
(1) In General. A qualified facility,
property, project, or equipment, are
hereafter referred to as a ‘‘facility’’ in
this notice. A facility generally must
meet the prevailing wage and
apprenticeship requirements to receive
the increased credit or deduction
2 Effective November 25, 2022, 29 CFR part 29 is
no longer divided into subparts A and B because
subpart B (Industry Recognized Apprenticeship
Programs) was rescinded in a final rule published
on September 26, 2022. See 87 FR 58269.
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73581
amounts under §§ 30C, 45, 45Q, 45V,
45Y, 48, 48E, and 179D if construction
(or installation for purposes of § 179D)
of the facility begins on or after the date
60 days after the Secretary publishes
guidance with respect to the prevailing
wage and apprenticeship requirements
of the Code.3 The IRS has issued notices
under §§ 45,4 45Q,5 and 48 6
(collectively, IRS Notices) that provide
guidance for determining when
construction begins for purposes of
§§ 45, 45Q, and 48, respectively,
including a safe harbor regarding the
continuity requirement (described in
section 2.02(3) of this notice).
(2) Establishing Beginning of
Construction. The IRS Notices describe
two methods that a taxpayer may use to
establish that construction of a facility
begins: (i) by starting physical work of
a significant nature (Physical Work
Test), and (ii) by paying or incurring
five percent or more of the total cost of
the facility (Five Percent Safe Harbor).
(i) Physical Work Test. Under the
Physical Work Test, construction of a
facility begins when physical work of a
significant nature begins, provided that
the taxpayer maintains a continuous
program of construction. This test
focuses on the nature of the work
performed, not the amount or the costs.
Assuming the work performed is of a
significant nature, there is no fixed
minimum amount of work or monetary
or percentage threshold required to
satisfy the Physical Work Test. Physical
work of significant nature does not
include preliminary activities, even if
the cost of those preliminary activities
is properly included in the depreciable
basis of the facility.7 For purposes of the
Physical Work Test, preliminary
activities include, but are not limited to,
planning or designing, securing
financing, exploring, researching,
3 Certain facilities are exempt from the prevailing
wage and apprenticeship requirements. See, for
example, § 45(b)(6)(B)(i).
4 Notice 2013–29, 2013–20 I.R.B. 1085; clarified
by Notice 2013–60, 2013–44 I.R.B. 431; clarified
and modified by Notice 2014–46, 2014–36 I.R.B.
520; updated by Notice 2015–25, 2015–13 I.R.B.
814; clarified and modified by Notice 2016–31,
2016–23 I.R.B. 1025; updated, clarified, and
modified by Notice 2017–04, 2017–4 I.R.B. 541;
Notice 2018–59, 2018–28 I.R.B. 196; modified by
Notice 2019–43, 2019–31 I.R.B. 487; modified by
Notice 2020–41, 2020–25 I.R.B. 954; clarified and
modified by Notice 2021–5, 2021–3 I.R.B. 479;
clarified and modified by Notice 2021–41, 2021–29
I.R.B. 17.
5 Notice 2020–12, 2020–11 I.R.B. 495.
6 Notice 2018–59, 2018–28 I.R.B. 196; modified by
Notice 2019–43; modified by Notice 2020–41;
clarified and modified by Notice 2021–5; clarified
and modified by Notice 2021–41.
7 For § 45, see Notice 2013–29, section 4.02(1);
Notice 2016–31, section 5.03; for § 45Q, see Notice
2020–12, section 5.03; and for § 48, see Notice
2018–59, section 4.03.
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obtaining permits, licensing, conducting
surveys, environmental and engineering
studies, or clearing a site.8
Work performed by the taxpayer and
work performed for the taxpayer by
other persons under a binding written
contract 9 that is entered into prior to the
manufacture, construction, or
production of the property for use by
the taxpayer in the taxpayer’s trade or
business (or for the taxpayer’s
production of income) is taken into
account in determining whether
construction has begun.10 Both on-site
and off-site work (performed either by
the taxpayer or by another person under
a binding written contract) may be taken
into account for purposes of
demonstrating that physical work of a
significant nature has begun. Physical
work of a significant nature does not
include work (performed either by the
taxpayer or by another person under a
binding written contract) to produce
property that is either in existing
inventory or is normally held in
inventory by a vendor.11
(ii) Five Percent Safe Harbor. Under
the Five Percent Safe Harbor,
construction of a facility will be
considered as having begun if: (i) a
taxpayer pays or incurs (within the
meaning of § 1.461–1(a)(1) and (2)) five
percent or more of the total cost of the
facility, and (ii) thereafter, the taxpayer
makes continuous efforts to advance
towards completion of the facility. All
costs properly included in the
depreciable basis of the facility are
taken into account to determine whether
the Five Percent Safe Harbor has been
met.12 For property that is
manufactured, constructed, or produced
for the taxpayer by another person
under a binding written contract with
the taxpayer, costs incurred with respect
to the property by the other person
before the property is provided to the
taxpayer are deemed incurred by the
taxpayer when the costs are incurred by
the other person under the principles of
§ 461.13
8 For § 45, see Notice 2013–29, section 4.02(1);
Notice 2016–31, section 5.03; for § 45Q, see Notice
2020–12, section 5.03; and for § 48, see Notice
2018–59, section 4.03.
9 For § 45, see Notice 2013–29, section 4.03(1); for
§ 45Q, see Notice 2020–12, section 8.02(1); for § 48,
see Notice 2018–59, section 7.03(1).
10 For § 45, see Notice 2013–29, sections 4.01 and
4.03; for § 45Q, see Notice 2020–12, section 8.02;
and for § 48, see Notice 2018–59, section 7.03.
11 For § 45, see Notice 2013–29, section 4.02(2);
for § 45Q, see Notice 2020–12, section 5.04; and for
§ 48, see Notice 2018–59, section 4.04.
12 For § 45, see Notice 2013–29, section 5.01(1);
for § 48, see Notice 2018–59, section 5.02; and for
§ 45Q, see Notice 2020–12, section 6.02.
13 For § 45, see Notice 2013–29, section 5.01(2);
for § 48, see Notice 2018–59, section 7.03; for § 45Q,
see Notice 2020–12, section 8.02.
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(3) Continuity Requirement and
Continuity Safe Harbor. The IRS
Notices, as clarified and modified by
Notice 2021–41, provide that for
purposes of the Physical Work Test and
Five Percent Safe Harbor, taxpayers
must demonstrate either continuous
construction or continuous efforts
(Continuity Requirement) regardless of
whether the Physical Work Test or the
Five Percent Safe Harbor was used to
establish the beginning of construction.
Whether a taxpayer meets the
Continuity Requirement under either
test is determined by the relevant facts
and circumstances. The IRS will closely
scrutinize a facility and may determine
that the beginning of construction is not
satisfied with respect to a facility if a
taxpayer does not meet the Continuity
Requirement.
The IRS Notices, as subsequently
modified and clarified, also provide for
a ‘‘Continuity Safe Harbor’’ under which
a taxpayer will be deemed to satisfy the
Continuity Requirement provided a
qualified facility is placed in service no
more than four calendar years after the
calendar year during which
construction of the qualified facility
began for purposes of §§ 45 14 and 48,15
and no more than six calendar years
after the calendar year during which
construction of the qualified facility or
carbon capture equipment began for
purposes of § 45Q.16 Certain offshore
projects and projects built on federal
land under §§ 45 and 48 satisfy the
Continuity Requirement if such a
project is placed into service no more
than 10 calendar years after the calendar
year during which construction of the
project began.17
.03 Recordkeeping.
Section 6001 provides that every
person liable for any tax imposed by the
Code, or for the collection thereof, must
keep such records as the Secretary may
from time to time prescribe. Section
1.6001–1(a) provides that any person
subject to income tax must keep such
permanent books of account or records,
including inventories, as are sufficient
to establish the amount of gross income,
deductions, credits, or other matters
required to be shown by such person in
any return of such tax. Section 1.6001–
1(e) provides that the books and records
required by § 1.6001–1 must be retained
so long as the contents thereof may
14 Notice
2016–31, section 3.
2018–59, section 6.05.
16 Notice 2020–12, section 7.05.
17 Notice 2021–5. Projects under §§ 45 and 48
may also be eligible for the extended Continuity
Safe Harbors provided for in Notices 2020–41 and
2021–41 due to the COVID–19 pandemic depending
on when construction began with respect to those
projects.
15 Notice
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become material in the administration
of any internal revenue law.
Section 45(b)(12) authorizes the
Secretary to issue such regulations or
other guidance as the Secretary
determines necessary to carry out the
purposes of § 45(b), including
regulations or other guidance that
provide requirements for recordkeeping
or information reporting for purposes of
administering the requirements of
§ 45(b).18
Section 3. Guidance With Respect to
Prevailing Wage Rate Requirements
.01 How to Satisfy Prevailing Wage
Rate Requirements. The Prevailing
Wage Rate Requirements under
§ 45(b)(7)(A) and the substantially
similar provisions set forth in §§ 30C,
45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C,
48E, and 179D will be satisfied if:
(1) The taxpayer satisfies the
Prevailing Wage Rate Requirements
with respect to any laborer or mechanic
employed in the construction,
alteration, or repair of a facility,
property, project, or equipment by the
taxpayer or any contractor or
subcontractor of the taxpayer; and
(2) The taxpayer maintains and
preserves sufficient records, including
books of account or records for work
performed by contractors or
subcontractors of the taxpayer, to
establish that such laborers and
mechanics were paid wages not less
than such prevailing rates, in
accordance with the general
recordkeeping requirements under
§ 6001 and § 1.6001–1, et seq.
.02 Prevailing Wage Determinations. If
the Secretary of Labor has published on
www.sam.gov a prevailing wage
determination for the geographic area
and type or types of construction
applicable to the facility, including all
labor classifications for the
construction, alteration, or repair work
that will be done on the facility by
laborers or mechanics, that wage
determination contains the prevailing
rates for the laborers or mechanics who
perform work on the facility as most
recently determined by the Secretary of
Labor in accordance with subchapter IV
of chapter 31 of title 40, United States
Code, as identified in § 45(b)(7)(A). The
following procedures described in
section 3.02 of this notice are designed
to be used to request an unlisted
classification only in the limited
circumstance when no labor
classification on the applicable
18 See also §§ 30C(g)(4), 45L(g)(3), 45Q(h)(5),
45U(d)(3), 45V(e)(5), 45Y(f), 45Z(e), 48(a)(16),
48E(i), and 179D(b)(6).
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prevailing wage determination applies
to the planned work.
If the Secretary of Labor has not
published a prevailing wage
determination for the geographic area
and type of construction for the facility
on www.sam.gov, or the Secretary of
Labor has issued a prevailing wage
determination for the geographic area
and type of construction, but one or
more labor classifications for the
construction, alteration, or repair work
that will be done on the facility by
laborers or mechanics is not listed, then
the taxpayer can rely on the procedures
established by the Secretary of Labor for
purposes of the requirement to pay
prevailing rates determined by the
Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40,
United States Code.19 To rely on the
procedures to request a wage
determination or wage rate, and to rely
on the wage determination or rate
provided in response to the request, the
taxpayer must contact the Department of
Labor, Wage and Hour Division via
email at IRAprevailingwage@dol.gov
and provide the Wage and Hour
Division with the type of facility,
facility location, proposed labor
classifications, proposed prevailing
wage rates, job descriptions and duties,
and any rationale for the proposed
classifications. The taxpayer may use
these procedures to request a wage
determination, or wage rates for the
unlisted classifications, applicable to
the construction, alteration, or repair of
the facility. After review, the
Department of Labor, Wage and Hour
Division will notify the taxpayer as to
the labor classifications and wage rates
to be used for the type of work in
question in the area in which the facility
is located.
Questions regarding the applicability
of a wage determination or its listed
classifications and wage rates should be
directed to the Department of Labor,
Wage and Hour Division via email at
IRAprevailingwage@dol.gov.
For purposes of the Prevailing Wage
Rate Requirements, the prevailing rate
for qualified apprentices hired through
a registered apprenticeship program
may be less than the corresponding
prevailing rate for journeyworkers of the
same classification, as described in 29
CFR 5.5(a)(4)(i).
For purposes of the Prevailing Wage
Requirements for the § 179D deduction,
the prevailing wage rate for installation
of energy efficient commercial building
19 The taxpayer is not required to follow any other
procedure to request a wage determination or a
wage rate under § 45(b)(7)(A), including submission
of the Form SF–1444.
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property, energy efficient building
retrofit property, or property installed
pursuant to a qualified retrofit plan, is
determined with respect to the
prevailing wage rate for construction,
alteration, or repair of a similar
character in the locality in which such
property is located, as most recently
determined by the Secretary of Labor, in
accordance with subchapter IV of
chapter 31 of title 40, United States
Code.
.03 Definitions. For purposes of the
Prevailing Wage Rate Requirement and
the associated recordkeeping
requirements the following definitions
apply.
(1) A taxpayer, contractor, or
subcontractor is considered to ‘‘employ’’
an individual if the individual performs
services for the taxpayer, contractor, or
subcontractor in exchange for
remuneration, regardless of whether the
individual would be characterized as an
employee or an independent contractor
for other Federal tax purposes.
(2) The terms ‘‘wage’’ and ‘‘wages’’
means ‘‘wages’’ as defined under 29
CFR 5.2(p), including any bona fide
fringe benefits as defined therein.
(3) The term ‘‘laborer or mechanic’’
means ‘‘laborer or mechanic’’ as defined
under 29 CFR 5.2(m).
(4) The term ‘‘construction, alteration,
or repair’’ means ‘‘construction,
prosecution, completion, or repair’’ as
defined under 29 CFR 5.2(j).
(5) The term ‘‘prevailing wage’’ means
the wage listed for a particular
classification of laborer or mechanic on
the applicable wage determination for
the type of construction and the
geographic area or other applicable
wage as determined by the Secretary of
Labor.
(6) The term ‘‘prevailing wage
determination’’ means a wage
determination issued by the Department
of Labor and published on
www.sam.gov.20
.04 Examples.
(1) Example 1. A taxpayer employs
laborers and mechanics to construct a
facility. The taxpayer also uses a
contractor and subcontractor to
construct the facility. The Department of
Labor has issued a prevailing wage
determination that applies to the type of
construction that the laborers and
mechanics perform for the county in
which the facility is located. The
taxpayer ensures that the taxpayer,
contractor, and subcontractor pay each
laborer and mechanic a wage rate equal
to the applicable rates for their
20 Prevailing wage determinations and the
applicable procedures are described in section 3.02
of this notice, above.
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73583
respective labor classifications listed in
this prevailing wage determination. The
taxpayer maintains records that are
sufficient to establish that the taxpayer
and the taxpayer’s contractor and
subcontractor paid wages not less than
such prevailing wage rates. Such
records include but are not limited to,
identifying the applicable wage
determination, the laborers and
mechanics who performed construction
work on the facility, the classifications
of work they performed, their hours
worked in each classification, and the
wage rates paid for the work. Under
these facts, the taxpayer will be
considered to have satisfied the
Prevailing Wage Rate Requirements
with respect to the facility.
(2) Example 2. The facts are the same
as in Example 1, except that the
Department of Labor has not issued an
applicable prevailing wage
determination for the relevant type of
construction and geographic area in
which the facility is being constructed.
The taxpayer contacts the Department of
Labor, Wage and Hour Division under
the procedures described in section 3.02
of this notice. After review, the
Department of Labor, Wage and Hour
Division notifies the taxpayer as to the
labor classifications and wage rates to be
used for the type of construction work
in question in the area in which the
facility is located. The taxpayer ensures
that the taxpayer, contractor, and
subcontractor pay each laborer and
mechanic a wage rate equal to the
applicable rates for the respective
classifications listed in this wage
determination.
The taxpayer maintains records,
which include the additional prevailing
wage rates provided by the Department
of Labor to establish that the taxpayer
and the taxpayer’s contractor and
subcontractor paid wages not less than
such prevailing wage rates. Under these
facts, the taxpayer will be considered to
have satisfied the Prevailing Wage Rate
Requirements with respect to the
facility.
(3) Example 3. The facts are the same
as in Example 1, except that the
Department of Labor has issued a
prevailing wage determination that
applies to the type of construction that
the laborers and mechanics are hired to
perform for the county in which the
facility is located, but that wage
determination does not include a
classification of laborer or mechanic
that will be used to complete the
construction work on the facility (for
example, electrician, carpenter, laborer,
etc.). The taxpayer contacts the
Department of Labor, Wage and Hour
Division under the procedures
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described in section 3.02 of this notice.
After review, including confirming that
no labor classification on the applicable
prevailing wage determination that
applies to the work exists, the
Department of Labor, Wage and Hour
Division notifies the taxpayer as to the
wage rate to be paid regarding the
additional classification. The taxpayer
ensures that the taxpayer, contractor,
and subcontractor pay each laborer and
mechanic a wage rate equal to the
applicable rates for their respective
labor classifications listed in the
prevailing wage determination,
including the additional wage rates
provided by the Department of Labor.
The taxpayer maintains records,
which include the additional wage rates
provided by the Department of Labor to
establish that the taxpayer and
taxpayer’s contractor and subcontractor
paid wages not less than prevailing
wage rates. Under these facts, the
taxpayer will be considered to have
satisfied the Prevailing Wage Rate
Requirements with respect to the
facility.
Section 4. Guidance With Respect to
Apprenticeship Requirements
.01 How to Satisfy Apprenticeship
Requirements. A taxpayer satisfies the
apprenticeship requirements described
in § 45(b)(8) if:
(1) The taxpayer satisfies the
Apprenticeship Labor Hour
Requirements, subject to any applicable
Apprenticeship Ratio Requirements;
(2) The taxpayer satisfies the
Apprenticeship Participation
Requirements; and
(3) The taxpayer complies with the
general recordkeeping requirements
under § 6001 and § 1.6001–1, including
maintaining books of account or records
for contractors or subcontractors of the
taxpayer, as applicable, in sufficient
form to establish that the
Apprenticeship Labor Hour and the
Apprenticeship Participation
Requirements have been satisfied.
Under the Good Faith Effort
Exception,21 the taxpayer will be
considered to have made a good faith
effort in requesting qualified
apprentices if the taxpayer requests
qualified apprentices from a registered
apprenticeship program in accordance
with usual and customary business
practices for registered apprenticeship
programs in a particular industry.22
Pursuant to § 6001 and § 1.6001–1, the
taxpayer must maintain sufficient books
and records establishing the taxpayer’s
request of qualified apprentices from a
registered apprenticeship program and
the program’s denial of such request or
non-response to such request, as
applicable.
.02 Definitions. For purposes of the
apprenticeship requirements the
following definitions apply.
(1) A taxpayer, contractor, or
subcontractor is considered to ‘‘employ’’
an individual if the individual performs
services for the taxpayer, contractor, or
subcontractor in exchange for
remuneration, regardless of whether the
individual would be characterized as an
employee or an independent contractor
for other Federal tax purposes.23
(2) The term ‘‘journeyworker’’ means
‘‘journeyworker’’ as defined under 29
CFR 29.2.
(3) The term ‘‘apprentice-tojourneyworker ratio’’ means the ratio
described under 29 CFR 29.5(b)(7).
(4) The term ‘‘construction, alteration,
or repair’’ means ‘‘construction,
prosecution, completion, or repair’’ as
defined under 29 CFR 5.2(j).
(5) The term ‘‘State Apprenticeship
Agency’’ means ‘‘State Apprenticeship
Agency’’ as defined under 29 CFR 29.2.
.03 Example. A taxpayer employs
workers and qualified apprentices to
construct a new facility. Construction of
the facility begins in calendar year 2023,
and the construction of the facility is
completed in calendar year 2023. To
satisfy the apprenticeship labor hour
requirement, the percentage of total
labor hours to be performed by qualified
apprentices is 12.5 percent for 2023.
The total labor hours, as defined in
§ 45(b)(8)(E)(i), for the construction of
the facility is 10,000 labor hours. The
taxpayer employed qualified
apprentices that performed a total of
1,150 hours of construction on the
facility. On each day that a qualified
apprentice performed construction work
on the facility for the taxpayer, the
applicable requirements for apprenticeto-journeyworker ratios of the
Department of Labor or the applicable
State Apprenticeship Agency were met.
The taxpayer also hired a contractor
to assist with construction of the facility
for 1,000 labor hours of the 10,000 total
labor hours. The contractor employed
qualified apprentices that performed a
total of 100 hours of construction on the
21 Described in section 2.01(3) of this notice,
above.
22 Registered apprenticeship programs can be
located using the Office of Apprenticeship’s partner
finder tool, available at https://
www.apprenticeship.gov/partner-finder and
through the applicable State Apprenticeship
Agency, https://www.apprenticeship.gov/about-us/
state-offices.
23 This definition does not alter any of the
existing legal requirements pertaining to the proper
classification of qualified apprentices in registered
apprenticeship programs as employees for purposes
of certain Federal laws and regulations.
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16:58 Nov 29, 2022
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facility. On each day that a qualified
apprentice performed construction work
on the facility for the contractor, the
applicable requirements for apprenticeto-journeyworker ratios of the
Department of Labor or the applicable
State Apprenticeship Agency were met.
The taxpayer ensured that the
taxpayer and the contractor each
employed 1 or more qualified
apprentices because the taxpayer and
contractor each employed 4 or more
individuals to perform construction
work on the qualified facility.
The taxpayer maintained sufficient
records to establish that the taxpayer
and the contractor hired by the taxpayer
satisfied the Apprenticeship Labor Hour
Requirement of 1,250 total labor hours
for the facility (12.5% of 10,000 labor
hours), and the Apprenticeship Ratio
and Apprenticeship Participation
Requirements. Under these facts, the
taxpayer will be considered to have
satisfied the Apprenticeship Labor
Hour, Apprenticeship Ratio, and
Apprenticeship Participation
Requirements of the statute with respect
to the facility.
Section 5. Determining When
Construction or Installation Begins
To determine when construction
begins for purposes of §§ 30C, 45V, 45Y,
and 48E, principles similar to those
under Notice 2013–29 regarding the
Physical Work Test and Five Percent
Safe Harbor apply, and taxpayers
satisfying either test will be considered
to have begun construction. In addition,
principles similar to those provided in
the IRS Notices regarding the Continuity
Requirement for purposes of §§ 30C,
45V, 45Y, and 48E apply. Whether a
taxpayer meets the Continuity
Requirement under either test is
determined by the relevant facts and
circumstances.
Similar principles to those under
section 3 of Notice 2016–31 regarding
the Continuity Safe Harbor also apply
for purposes of §§ 30C, 45V, 45Y, and
48E. Taxpayers may rely on the
Continuity Safe Harbor provided the
facility is placed in service no more
than four calendar years after the
calendar year during which
construction began.
For purposes of § 179D, the IRS will
accept that installation has begun if a
taxpayer generally satisfies principles
similar to the two tests described in
section 2.02 of this notice, above,
regarding the beginning of construction
under Notice 2013–29 (Physical Work
Test and Five Percent Safe Harbor). The
relevant facts and circumstances will
ultimately be determinative of whether
a taxpayer has begun installation.
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For purposes of §§ 45, 45Q, and 48,
the IRS Notices will continue to apply
under each respective Code section,
including application of the Physical
Work Test and Five Percent Safe Harbor,
and the rules regarding the Continuity
Requirement and Continuity Safe
Harbors.24
Section 6. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA), 44 U.S.C. 3501 et seq., and its
attendant regulations, 5 CFR part 1320,
require an agency to consider the impact
of paperwork and other information
collection burdens imposed on the
public. The IRA allows taxpayers to take
certain increased credit amounts or an
increased deduction if they satisfy the
Prevailing Wage Requirements, and
Apprenticeship Requirements, where
applicable. The Department of Labor
will collect the data needed to issue
wage rates for taxpayers in connection
with facilities whose construction,
alteration, or repair is not subject to one
or more Davis-Bacon and Related Acts
(DBRA), as facilities subject to the
DBRA are already accounted for in an
existing collection approved by OMB.25
DOL data collections needed to register
apprentices and apprenticeship
programs are accounted for in an
existing collection approved by OMB.26
Under the PRA, an agency may not
collect or sponsor an information
collection requirement unless it
displays a currently valid Office of
Management and Budget (OMB) control
number.27 This collection of
information is approved under OMB
Control Number 1235–0034. The
Department of Labor estimates that it
will take an average of 15 minutes for
respondents to complete this collection
of information, including the time for
reviewing instructions, searching
existing data sources, gathering and
maintaining the data needed, and
completing and reviewing the collection
of information. The information that the
Department of Labor will collect, as
discussed in section 3.02 of this notice,
includes the type of facility, facility
location, proposed labor classifications,
proposed prevailing wage rates, job
descriptions and duties, and any
rationale for the proposed
classifications. After review, the
Department of Labor will notify the
lotter on DSK11XQN23PROD with NOTICES1
24 Described
in section 2.02 of this notice, above.
Control Number 1235–0023.
26 OMB Control Number 1205–0223.
27 See 5 CFR 1320.8(b)(3)(vi).
25 OMB
VerDate Sep<11>2014
16:58 Nov 29, 2022
Jkt 259001
taxpayer as to the labor classifications
and wage rates to be used for the type
of work in question in the area in which
the facility is located. You may view the
Department of Labor’s web page
instruction here: https://www.dol.gov/
agencies/whd/IRA.
Section 7. Drafting Information
The principal authors of this notice
are Alexander Scott and Jeremy Milton
of Associate Chief Counsel
(Passthroughs & Special Industries).
However, other personnel from the
Treasury Department and the IRS
participated in its development. For
further information regarding this notice
contact Mr. Scott at (202) 317–6853 (not
a toll-free call).
Melanie R. Krause,
Acting Deputy Commissioner for Services and
Enforcement.
Approved: November 23, 2022.
Krishna P. Vallabhaneni,
Tax Legislative Counsel.
[FR Doc. 2022–26108 Filed 11–29–22; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF VETERANS
AFFAIRS
[OMB Control No. 2900–0572]
Agency Information Collection
Activity: Application for Benefits for
Qualifying Veteran’s Child Born With
Disabilities
Veterans Benefits
Administration, Department of Veterans
Affairs.
ACTION: Notice.
AGENCY:
Veterans Benefits
Administration, Department of Veterans
Affairs (VA), is announcing an
opportunity for public comment on the
proposed collection of certain
information by the agency. Under the
Paperwork Reduction Act (PRA) of
1995, Federal agencies are required to
publish notice in the Federal Register
concerning each proposed collection of
information, including each proposed
revision of a currently approved
collection, and allow 60 days for public
comment in response to the notice.
DATES: Written comments and
recommendations on the proposed
collection of information should be
received on or before January 30, 2023.
ADDRESSES: Submit written comments
on the collection of information through
SUMMARY:
PO 00000
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73585
Federal Docket Management System
(FDMS) at www.Regulations.gov or to
Nancy J. Kessinger, Veterans Benefits
Administration (20M33), Department of
Veterans Affairs, 810 Vermont Avenue
NW, Washington, DC 20420 or email to
nancy.kessinger@va.gov. Please refer to
‘‘OMB Control No. 2900–0572’’ in any
correspondence. During the comment
period, comments may be viewed online
through FDMS.
FOR FURTHER INFORMATION CONTACT:
Maribel Aponte, Office of Enterprise
and Integration, Data Governance
Analytics (008), 810 Vermont Ave. NW,
Washington, DC 20006, (202) 266–4688
or email maribel.aponte@va.gov. Please
refer to ‘‘OMB Control No. 2900–0572’’
in any correspondence.
Under the
PRA of 1995, Federal agencies must
obtain approval from the Office of
Management and Budget (OMB) for each
collection of information they conduct
or sponsor. This request for comment is
being made pursuant to section
3506(c)(2)(A) of the PRA.
With respect to the following
collection of information, VBA invites
comments on: (1) whether the proposed
collection of information is necessary
for the proper performance of VBA’s
functions, including whether the
information will have practical utility;
(2) the accuracy of VBA’s estimate of the
burden of the proposed collection of
information; (3) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (4)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
the use of other forms of information
technology.
Authority: 38 U.S.C. 1805, 1815, 1821,
and 1822.
Title: Application for Benefits for
Qualifying Veteran’s Child Born with
Disabilities (VA Form 21–0304).
OMB Control Number: 2900–0572.
Type of Review: Revision of a
currently approved collection.
Abstract: VA Form 21–0304 is used to
determine the monetary allowance for a
child born with Spina Bifida or certain
birth defects who is the natural child of
a Vietnam and certain Thailand or
Korea service veterans. Without this
information, VA would be unable to
effectively administer 38 U.S.C. 1805,
1815, 1821, and 1822.
SUPPLEMENTARY INFORMATION:
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]]>Agencies
[Federal Register Volume 87, Number 229 (Wednesday, November 30, 2022)]
[Notices]
[Pages 73580-73585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26108]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
[2022-61]
Prevailing Wage and Apprenticeship Initial Guidance Under Section
45(b)(6)(B)(ii) and Other Substantially Similar Provisions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of initial guidance.
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SUMMARY: This notice provides guidance on the prevailing wage and
apprenticeship requirements that generally apply to certain provisions
of the Internal Revenue Code (Code), as amended by the Inflation
Reduction Act of 2022. This notice also serves as the published
guidance establishing the 60-day period described in those provisions
of the Code with respect to the applicability of the prevailing wage
and apprenticeship requirements. Finally, this notice provides guidance
for determining the beginning of construction of a facility for certain
credits allowed under the Code, and the beginning of installation of
certain property with respect to the energy efficient commercial
buildings deduction under the Code. This notice affects facilities the
construction of which began, or certain property the installation of
which began, on or after January 30, 2023. The Department of the
Treasury (Treasury Department) and the IRS anticipate issuing proposed
regulations and other guidance with respect to the prevailing wage and
apprenticeship requirements.
DATES: January 30, 2023 is the date that is 60 days after the Secretary
of the Treasury or her delegate (Secretary) publishes the guidance
described in 26 U.S.C. 30C(g)(1)(C)(i), 45(b)(6)(B)(ii), 45Q(h)(2),
45V(e)(2)(A)(i), 45Y(a)(2)(B)(ii), 48(a)(9)(B)(ii),
48E(a)(2)(A)(ii)(II) and (a)(2)(B)(ii)(II), and 179D(b)(3)(B)(i).
FOR FURTHER INFORMATION CONTACT: Alexander Scott, CC:PSI:6, Internal
Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224, at
(202) 317-6853 (not a toll-free call).
SUPPLEMENTARY INFORMATION:
Section 1. Purpose
Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly
known as the Inflation Reduction Act of 2022 (IRA), amended Sec. Sec.
30C, 45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E, and 179D of the
Internal Revenue Code (Code) to add prevailing wage and apprenticeship
requirements to qualify for increased credit or deduction amounts.\1\
This notice provides guidance on the prevailing wage and apprenticeship
requirements that generally apply to those sections of the Code. This
notice also serves as the published guidance under Sec. Sec.
30C(g)(1)(C)(i), 45(b)(6)(B)(ii), 45Q(h)(2), 45V(e)(2)(A)(i),
45Y(a)(2)(B)(ii), 48(a)(9)(B)(ii), 48E(a)(2)(A)(ii)(II) and
(a)(2)(B)(ii)(II), and 179D(b)(3)(B)(i) establishing the 60-day period
described in such sections with respect to the applicability of the
prevailing wage and apprenticeship requirements. Finally, this notice
provides guidance for determining the beginning of construction under
Sec. Sec. 30C, 45, 45Q, 45V, 45Y, 48, and 48E, and the beginning of
installation under Sec. 179D solely for purposes of Sec.
179D(b)(3)(B)(i).
---------------------------------------------------------------------------
\1\ See Sec. Sec. 13101(f), 13102(k), 13104(d), 13105(a),
13204(a)(1), 13303(a)(1), 13304(d), 13404(d), 13501(a), 13701(a),
13702(a), and 13704(a) of the IRA.
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The Department of the Treasury (Treasury Department) and the
Internal Revenue Service (IRS) anticipate issuing proposed regulations
and other guidance with respect to the prevailing wage and
apprenticeship requirements.
Section 2. Background
.01 Increased Tax Benefits For Satisfying Certain Prevailing Wage
and Apprenticeship or Construction and Installation Requirements.
(1) In General. Increased credit amounts are available under
Sec. Sec. 30C, 45, 45Q, 45V, 45Y, 45Z, 48, 48C, and 48E, and an
increased deduction is available under Sec. 179D, for taxpayers
satisfying certain prevailing wage and apprenticeship requirements.
Increased credit amounts are available under Sec. Sec. 45L and 45U for
taxpayers satisfying certain prevailing wage requirements. The general
concepts and provisions relating to the increased tax benefits under
Sec. 45(b)(6), (7), and (8) are similar to those under each of these
other Code sections. Therefore, only the relevant provisions under
Sec. 45(b)(6), (7), and (8) are discussed in section 2.01(2) and (3)
of this notice.
(2) Prevailing Wage Requirements. Section 45(b)(7)(A) provides that
to meet the prevailing wage requirements with respect to any qualified
facility, a taxpayer must ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcontractor in: (i) the
construction of such facility, and (ii) the alteration or repair of
such facility (with respect to any taxable year, for any portion of
such taxable year that is within the 10-year period beginning on the
date the qualified facility is originally placed in service), are paid
wages at rates not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality in which
such facility is located as most recently determined by the Secretary
of Labor, in accordance with subchapter IV of chapter 31 of title 40,
United States Code (Prevailing Wage Rate Requirements). Section
45(b)(7)(B) provides correction and penalty mechanisms for a taxpayer's
failure to satisfy the requirements under Sec. 45(b)(7)(A).
[[Page 73581]]
(3) Apprenticeship Requirements. Section 45(b)(8)(A)(i) provides
that to meet the apprenticeship requirements taxpayers must ensure
that, with respect to the construction of any qualified facility, not
less than the applicable percentage of the total labor hours of the
construction, alteration, or repair work (including such work performed
by any contractor or subcontractor) with respect to such facility is,
subject to Sec. 45(b)(8)(B), performed by qualified apprentices
(Apprenticeship Labor Hour Requirements). Under Sec. 45(b)(8)(A)(ii),
for purposes of Sec. 45(b)(8)(A)(i), the applicable percentage is: (i)
in the case of a qualified facility the construction of which begins
before January 1, 2023, 10 percent, (ii) in the case of a qualified
facility the construction of which begins after December 31, 2022, and
before January 1, 2024, 12.5 percent, and (iii) in the case of a
qualified facility the construction of which begins after December 31,
2023, 15 percent.
Section 45(b)(8)(B) provides that the requirement under Sec.
45(b)(8)(A)(i) is subject to any applicable requirements for
apprentice-to-journeyworker ratios of the Department of Labor or the
applicable State Apprenticeship Agency (Apprenticeship Ratio
Requirements). Section 45(b)(8)(C) provides that each taxpayer,
contractor, or subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work with respect to the
construction of a qualified facility must employ 1 or more qualified
apprentices to perform such work (Apprenticeship Participation
Requirements).
Under Sec. 45(b)(8)(D)(i), a taxpayer is not treated as failing to
satisfy the requirements of Sec. 45(b)(8) if: (i) the taxpayer
satisfies the requirements described in Sec. 45(b)(8)(D)(ii) (Good
Faith Effort Exception), or (ii) subject to Sec. 45(b)(8)(D)(iii)
(Intentional Disregard Provision), in the case of any failure by the
taxpayer to satisfy the requirement under Sec. 45(b)(8)(A) and (C)
with respect to the construction, alteration, or repair work on any
qualified facility to which Sec. 45(b)(8)(D)(i)(I) does not apply, the
taxpayer makes payment to the Secretary of the Treasury or her delegate
(Secretary) of a penalty in an amount equal to the product of $50
multiplied by the total labor hours for which the requirement described
in Sec. 45(b)(8)(A) and (C) was not satisfied with respect to the
construction, alteration, or repair work on such qualified facility.
Under the Good Faith Effort Exception described in Sec.
45(b)(8)(D)(ii), a taxpayer is deemed to have satisfied the
apprenticeship requirements with respect to a qualified facility if the
taxpayer has requested qualified apprentices from a registered
apprenticeship program, as defined in Sec. 3131(e)(3)(B), and: (i)
such request has been denied, provided that such denial is not the
result of a refusal by the taxpayer or any contractors or
subcontractors engaged in the performance of construction, alteration,
or repair work with respect to such qualified facility to comply with
the established standards and requirements of the registered
apprenticeship program, or (ii) the registered apprenticeship program
fails to respond to such request within 5 business days after the date
on which such registered apprenticeship program received such request.
Under the Intentional Disregard Provision, if the Secretary
determines that any failure described in Sec. 45(b)(8)(D)(i)(II) is
due to intentional disregard of the requirements under Sec.
45(b)(8)(A) and (C), Sec. 45(b)(8)(D)(i)(II) is applied by
substituting ``$500'' for ``$50.''
Under Sec. 45(b)(8)(E)(i), the term ``labor hours'' means the
total number of hours devoted to the performance of construction,
alteration, or repair work by any individual employed by the taxpayer
or by any contractor or subcontractor. This term excludes any hours
worked by foremen, superintendents, owners, or persons employed in a
bona fide executive, administrative, or professional capacity (within
the meaning of those terms in part 541 of title 29, Code of Federal
Regulations).
Under Sec. 45(b)(8)(E)(ii), the term ``qualified apprentice''
means an individual who is employed by the taxpayer or by any
contractor or subcontractor and who is participating in a registered
apprenticeship program, as defined in Sec. 3131(e)(3)(B).
Section 3131(e)(3)(B) defines a registered apprenticeship program
as an apprenticeship registered under the Act of August 16, 1937
(commonly known as the National Apprenticeship Act, 50 Stat. 664,
chapter 663, 29 U.S.C. 50 et seq.) that meets the standards of subpart
A of part 29 and part 30 of title 29 of the Code of Federal
Regulations.\2\
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\2\ Effective November 25, 2022, 29 CFR part 29 is no longer
divided into subparts A and B because subpart B (Industry Recognized
Apprenticeship Programs) was rescinded in a final rule published on
September 26, 2022. See 87 FR 58269.
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.02 Beginning of Construction.
(1) In General. A qualified facility, property, project, or
equipment, are hereafter referred to as a ``facility'' in this notice.
A facility generally must meet the prevailing wage and apprenticeship
requirements to receive the increased credit or deduction amounts under
Sec. Sec. 30C, 45, 45Q, 45V, 45Y, 48, 48E, and 179D if construction
(or installation for purposes of Sec. 179D) of the facility begins on
or after the date 60 days after the Secretary publishes guidance with
respect to the prevailing wage and apprenticeship requirements of the
Code.\3\ The IRS has issued notices under Sec. Sec. 45,\4\ 45Q,\5\ and
48 \6\ (collectively, IRS Notices) that provide guidance for
determining when construction begins for purposes of Sec. Sec. 45,
45Q, and 48, respectively, including a safe harbor regarding the
continuity requirement (described in section 2.02(3) of this notice).
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\3\ Certain facilities are exempt from the prevailing wage and
apprenticeship requirements. See, for example, Sec. 45(b)(6)(B)(i).
\4\ Notice 2013-29, 2013-20 I.R.B. 1085; clarified by Notice
2013-60, 2013-44 I.R.B. 431; clarified and modified by Notice 2014-
46, 2014-36 I.R.B. 520; updated by Notice 2015-25, 2015-13 I.R.B.
814; clarified and modified by Notice 2016-31, 2016-23 I.R.B. 1025;
updated, clarified, and modified by Notice 2017-04, 2017-4 I.R.B.
541; Notice 2018-59, 2018-28 I.R.B. 196; modified by Notice 2019-43,
2019-31 I.R.B. 487; modified by Notice 2020-41, 2020-25 I.R.B. 954;
clarified and modified by Notice 2021-5, 2021-3 I.R.B. 479;
clarified and modified by Notice 2021-41, 2021-29 I.R.B. 17.
\5\ Notice 2020-12, 2020-11 I.R.B. 495.
\6\ Notice 2018-59, 2018-28 I.R.B. 196; modified by Notice 2019-
43; modified by Notice 2020-41; clarified and modified by Notice
2021-5; clarified and modified by Notice 2021-41.
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(2) Establishing Beginning of Construction. The IRS Notices
describe two methods that a taxpayer may use to establish that
construction of a facility begins: (i) by starting physical work of a
significant nature (Physical Work Test), and (ii) by paying or
incurring five percent or more of the total cost of the facility (Five
Percent Safe Harbor).
(i) Physical Work Test. Under the Physical Work Test, construction
of a facility begins when physical work of a significant nature begins,
provided that the taxpayer maintains a continuous program of
construction. This test focuses on the nature of the work performed,
not the amount or the costs. Assuming the work performed is of a
significant nature, there is no fixed minimum amount of work or
monetary or percentage threshold required to satisfy the Physical Work
Test. Physical work of significant nature does not include preliminary
activities, even if the cost of those preliminary activities is
properly included in the depreciable basis of the facility.\7\ For
purposes of the Physical Work Test, preliminary activities include, but
are not limited to, planning or designing, securing financing,
exploring, researching,
[[Page 73582]]
obtaining permits, licensing, conducting surveys, environmental and
engineering studies, or clearing a site.\8\
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\7\ For Sec. 45, see Notice 2013-29, section 4.02(1); Notice
2016-31, section 5.03; for Sec. 45Q, see Notice 2020-12, section
5.03; and for Sec. 48, see Notice 2018-59, section 4.03.
\8\ For Sec. 45, see Notice 2013-29, section 4.02(1); Notice
2016-31, section 5.03; for Sec. 45Q, see Notice 2020-12, section
5.03; and for Sec. 48, see Notice 2018-59, section 4.03.
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Work performed by the taxpayer and work performed for the taxpayer
by other persons under a binding written contract \9\ that is entered
into prior to the manufacture, construction, or production of the
property for use by the taxpayer in the taxpayer's trade or business
(or for the taxpayer's production of income) is taken into account in
determining whether construction has begun.\10\ Both on-site and off-
site work (performed either by the taxpayer or by another person under
a binding written contract) may be taken into account for purposes of
demonstrating that physical work of a significant nature has begun.
Physical work of a significant nature does not include work (performed
either by the taxpayer or by another person under a binding written
contract) to produce property that is either in existing inventory or
is normally held in inventory by a vendor.\11\
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\9\ For Sec. 45, see Notice 2013-29, section 4.03(1); for Sec.
45Q, see Notice 2020-12, section 8.02(1); for Sec. 48, see Notice
2018-59, section 7.03(1).
\10\ For Sec. 45, see Notice 2013-29, sections 4.01 and 4.03;
for Sec. 45Q, see Notice 2020-12, section 8.02; and for Sec. 48,
see Notice 2018-59, section 7.03.
\11\ For Sec. 45, see Notice 2013-29, section 4.02(2); for
Sec. 45Q, see Notice 2020-12, section 5.04; and for Sec. 48, see
Notice 2018-59, section 4.04.
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(ii) Five Percent Safe Harbor. Under the Five Percent Safe Harbor,
construction of a facility will be considered as having begun if: (i) a
taxpayer pays or incurs (within the meaning of Sec. 1.461-1(a)(1) and
(2)) five percent or more of the total cost of the facility, and (ii)
thereafter, the taxpayer makes continuous efforts to advance towards
completion of the facility. All costs properly included in the
depreciable basis of the facility are taken into account to determine
whether the Five Percent Safe Harbor has been met.\12\ For property
that is manufactured, constructed, or produced for the taxpayer by
another person under a binding written contract with the taxpayer,
costs incurred with respect to the property by the other person before
the property is provided to the taxpayer are deemed incurred by the
taxpayer when the costs are incurred by the other person under the
principles of Sec. 461.\13\
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\12\ For Sec. 45, see Notice 2013-29, section 5.01(1); for
Sec. 48, see Notice 2018-59, section 5.02; and for Sec. 45Q, see
Notice 2020-12, section 6.02.
\13\ For Sec. 45, see Notice 2013-29, section 5.01(2); for
Sec. 48, see Notice 2018-59, section 7.03; for Sec. 45Q, see
Notice 2020-12, section 8.02.
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(3) Continuity Requirement and Continuity Safe Harbor. The IRS
Notices, as clarified and modified by Notice 2021-41, provide that for
purposes of the Physical Work Test and Five Percent Safe Harbor,
taxpayers must demonstrate either continuous construction or continuous
efforts (Continuity Requirement) regardless of whether the Physical
Work Test or the Five Percent Safe Harbor was used to establish the
beginning of construction. Whether a taxpayer meets the Continuity
Requirement under either test is determined by the relevant facts and
circumstances. The IRS will closely scrutinize a facility and may
determine that the beginning of construction is not satisfied with
respect to a facility if a taxpayer does not meet the Continuity
Requirement.
The IRS Notices, as subsequently modified and clarified, also
provide for a ``Continuity Safe Harbor'' under which a taxpayer will be
deemed to satisfy the Continuity Requirement provided a qualified
facility is placed in service no more than four calendar years after
the calendar year during which construction of the qualified facility
began for purposes of Sec. Sec. 45 \14\ and 48,\15\ and no more than
six calendar years after the calendar year during which construction of
the qualified facility or carbon capture equipment began for purposes
of Sec. 45Q.\16\ Certain offshore projects and projects built on
federal land under Sec. Sec. 45 and 48 satisfy the Continuity
Requirement if such a project is placed into service no more than 10
calendar years after the calendar year during which construction of the
project began.\17\
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\14\ Notice 2016-31, section 3.
\15\ Notice 2018-59, section 6.05.
\16\ Notice 2020-12, section 7.05.
\17\ Notice 2021-5. Projects under Sec. Sec. 45 and 48 may also
be eligible for the extended Continuity Safe Harbors provided for in
Notices 2020-41 and 2021-41 due to the COVID-19 pandemic depending
on when construction began with respect to those projects.
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.03 Recordkeeping.
Section 6001 provides that every person liable for any tax imposed
by the Code, or for the collection thereof, must keep such records as
the Secretary may from time to time prescribe. Section 1.6001-1(a)
provides that any person subject to income tax must keep such permanent
books of account or records, including inventories, as are sufficient
to establish the amount of gross income, deductions, credits, or other
matters required to be shown by such person in any return of such tax.
Section 1.6001-1(e) provides that the books and records required by
Sec. 1.6001-1 must be retained so long as the contents thereof may
become material in the administration of any internal revenue law.
Section 45(b)(12) authorizes the Secretary to issue such
regulations or other guidance as the Secretary determines necessary to
carry out the purposes of Sec. 45(b), including regulations or other
guidance that provide requirements for recordkeeping or information
reporting for purposes of administering the requirements of Sec.
45(b).\18\
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\18\ See also Sec. Sec. 30C(g)(4), 45L(g)(3), 45Q(h)(5),
45U(d)(3), 45V(e)(5), 45Y(f), 45Z(e), 48(a)(16), 48E(i), and
179D(b)(6).
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Section 3. Guidance With Respect to Prevailing Wage Rate Requirements
.01 How to Satisfy Prevailing Wage Rate Requirements. The
Prevailing Wage Rate Requirements under Sec. 45(b)(7)(A) and the
substantially similar provisions set forth in Sec. Sec. 30C, 45L, 45Q,
45U, 45V, 45Y, 45Z, 48, 48C, 48E, and 179D will be satisfied if:
(1) The taxpayer satisfies the Prevailing Wage Rate Requirements
with respect to any laborer or mechanic employed in the construction,
alteration, or repair of a facility, property, project, or equipment by
the taxpayer or any contractor or subcontractor of the taxpayer; and
(2) The taxpayer maintains and preserves sufficient records,
including books of account or records for work performed by contractors
or subcontractors of the taxpayer, to establish that such laborers and
mechanics were paid wages not less than such prevailing rates, in
accordance with the general recordkeeping requirements under Sec. 6001
and Sec. 1.6001-1, et seq.
.02 Prevailing Wage Determinations. If the Secretary of Labor has
published on www.sam.gov a prevailing wage determination for the
geographic area and type or types of construction applicable to the
facility, including all labor classifications for the construction,
alteration, or repair work that will be done on the facility by
laborers or mechanics, that wage determination contains the prevailing
rates for the laborers or mechanics who perform work on the facility as
most recently determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code, as
identified in Sec. 45(b)(7)(A). The following procedures described in
section 3.02 of this notice are designed to be used to request an
unlisted classification only in the limited circumstance when no labor
classification on the applicable
[[Page 73583]]
prevailing wage determination applies to the planned work.
If the Secretary of Labor has not published a prevailing wage
determination for the geographic area and type of construction for the
facility on www.sam.gov, or the Secretary of Labor has issued a
prevailing wage determination for the geographic area and type of
construction, but one or more labor classifications for the
construction, alteration, or repair work that will be done on the
facility by laborers or mechanics is not listed, then the taxpayer can
rely on the procedures established by the Secretary of Labor for
purposes of the requirement to pay prevailing rates determined by the
Secretary of Labor in accordance with subchapter IV of chapter 31 of
title 40, United States Code.\19\ To rely on the procedures to request
a wage determination or wage rate, and to rely on the wage
determination or rate provided in response to the request, the taxpayer
must contact the Department of Labor, Wage and Hour Division via email
at [email protected] and provide the Wage and Hour Division
with the type of facility, facility location, proposed labor
classifications, proposed prevailing wage rates, job descriptions and
duties, and any rationale for the proposed classifications. The
taxpayer may use these procedures to request a wage determination, or
wage rates for the unlisted classifications, applicable to the
construction, alteration, or repair of the facility. After review, the
Department of Labor, Wage and Hour Division will notify the taxpayer as
to the labor classifications and wage rates to be used for the type of
work in question in the area in which the facility is located.
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\19\ The taxpayer is not required to follow any other procedure
to request a wage determination or a wage rate under Sec.
45(b)(7)(A), including submission of the Form SF-1444.
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Questions regarding the applicability of a wage determination or
its listed classifications and wage rates should be directed to the
Department of Labor, Wage and Hour Division via email at
[email protected].
For purposes of the Prevailing Wage Rate Requirements, the
prevailing rate for qualified apprentices hired through a registered
apprenticeship program may be less than the corresponding prevailing
rate for journeyworkers of the same classification, as described in 29
CFR 5.5(a)(4)(i).
For purposes of the Prevailing Wage Requirements for the Sec. 179D
deduction, the prevailing wage rate for installation of energy
efficient commercial building property, energy efficient building
retrofit property, or property installed pursuant to a qualified
retrofit plan, is determined with respect to the prevailing wage rate
for construction, alteration, or repair of a similar character in the
locality in which such property is located, as most recently determined
by the Secretary of Labor, in accordance with subchapter IV of chapter
31 of title 40, United States Code.
.03 Definitions. For purposes of the Prevailing Wage Rate
Requirement and the associated recordkeeping requirements the following
definitions apply.
(1) A taxpayer, contractor, or subcontractor is considered to
``employ'' an individual if the individual performs services for the
taxpayer, contractor, or subcontractor in exchange for remuneration,
regardless of whether the individual would be characterized as an
employee or an independent contractor for other Federal tax purposes.
(2) The terms ``wage'' and ``wages'' means ``wages'' as defined
under 29 CFR 5.2(p), including any bona fide fringe benefits as defined
therein.
(3) The term ``laborer or mechanic'' means ``laborer or mechanic''
as defined under 29 CFR 5.2(m).
(4) The term ``construction, alteration, or repair'' means
``construction, prosecution, completion, or repair'' as defined under
29 CFR 5.2(j).
(5) The term ``prevailing wage'' means the wage listed for a
particular classification of laborer or mechanic on the applicable wage
determination for the type of construction and the geographic area or
other applicable wage as determined by the Secretary of Labor.
(6) The term ``prevailing wage determination'' means a wage
determination issued by the Department of Labor and published on
www.sam.gov.\20\
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\20\ Prevailing wage determinations and the applicable
procedures are described in section 3.02 of this notice, above.
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.04 Examples.
(1) Example 1. A taxpayer employs laborers and mechanics to
construct a facility. The taxpayer also uses a contractor and
subcontractor to construct the facility. The Department of Labor has
issued a prevailing wage determination that applies to the type of
construction that the laborers and mechanics perform for the county in
which the facility is located. The taxpayer ensures that the taxpayer,
contractor, and subcontractor pay each laborer and mechanic a wage rate
equal to the applicable rates for their respective labor
classifications listed in this prevailing wage determination. The
taxpayer maintains records that are sufficient to establish that the
taxpayer and the taxpayer's contractor and subcontractor paid wages not
less than such prevailing wage rates. Such records include but are not
limited to, identifying the applicable wage determination, the laborers
and mechanics who performed construction work on the facility, the
classifications of work they performed, their hours worked in each
classification, and the wage rates paid for the work. Under these
facts, the taxpayer will be considered to have satisfied the Prevailing
Wage Rate Requirements with respect to the facility.
(2) Example 2. The facts are the same as in Example 1, except that
the Department of Labor has not issued an applicable prevailing wage
determination for the relevant type of construction and geographic area
in which the facility is being constructed. The taxpayer contacts the
Department of Labor, Wage and Hour Division under the procedures
described in section 3.02 of this notice. After review, the Department
of Labor, Wage and Hour Division notifies the taxpayer as to the labor
classifications and wage rates to be used for the type of construction
work in question in the area in which the facility is located. The
taxpayer ensures that the taxpayer, contractor, and subcontractor pay
each laborer and mechanic a wage rate equal to the applicable rates for
the respective classifications listed in this wage determination.
The taxpayer maintains records, which include the additional
prevailing wage rates provided by the Department of Labor to establish
that the taxpayer and the taxpayer's contractor and subcontractor paid
wages not less than such prevailing wage rates. Under these facts, the
taxpayer will be considered to have satisfied the Prevailing Wage Rate
Requirements with respect to the facility.
(3) Example 3. The facts are the same as in Example 1, except that
the Department of Labor has issued a prevailing wage determination that
applies to the type of construction that the laborers and mechanics are
hired to perform for the county in which the facility is located, but
that wage determination does not include a classification of laborer or
mechanic that will be used to complete the construction work on the
facility (for example, electrician, carpenter, laborer, etc.). The
taxpayer contacts the Department of Labor, Wage and Hour Division under
the procedures
[[Page 73584]]
described in section 3.02 of this notice. After review, including
confirming that no labor classification on the applicable prevailing
wage determination that applies to the work exists, the Department of
Labor, Wage and Hour Division notifies the taxpayer as to the wage rate
to be paid regarding the additional classification. The taxpayer
ensures that the taxpayer, contractor, and subcontractor pay each
laborer and mechanic a wage rate equal to the applicable rates for
their respective labor classifications listed in the prevailing wage
determination, including the additional wage rates provided by the
Department of Labor.
The taxpayer maintains records, which include the additional wage
rates provided by the Department of Labor to establish that the
taxpayer and taxpayer's contractor and subcontractor paid wages not
less than prevailing wage rates. Under these facts, the taxpayer will
be considered to have satisfied the Prevailing Wage Rate Requirements
with respect to the facility.
Section 4. Guidance With Respect to Apprenticeship Requirements
.01 How to Satisfy Apprenticeship Requirements. A taxpayer
satisfies the apprenticeship requirements described in Sec. 45(b)(8)
if:
(1) The taxpayer satisfies the Apprenticeship Labor Hour
Requirements, subject to any applicable Apprenticeship Ratio
Requirements;
(2) The taxpayer satisfies the Apprenticeship Participation
Requirements; and
(3) The taxpayer complies with the general recordkeeping
requirements under Sec. 6001 and Sec. 1.6001-1, including maintaining
books of account or records for contractors or subcontractors of the
taxpayer, as applicable, in sufficient form to establish that the
Apprenticeship Labor Hour and the Apprenticeship Participation
Requirements have been satisfied.
Under the Good Faith Effort Exception,\21\ the taxpayer will be
considered to have made a good faith effort in requesting qualified
apprentices if the taxpayer requests qualified apprentices from a
registered apprenticeship program in accordance with usual and
customary business practices for registered apprenticeship programs in
a particular industry.\22\ Pursuant to Sec. 6001 and Sec. 1.6001-1,
the taxpayer must maintain sufficient books and records establishing
the taxpayer's request of qualified apprentices from a registered
apprenticeship program and the program's denial of such request or non-
response to such request, as applicable.
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\21\ Described in section 2.01(3) of this notice, above.
\22\ Registered apprenticeship programs can be located using the
Office of Apprenticeship's partner finder tool, available at https://www.apprenticeship.gov/partner-finder and through the applicable
State Apprenticeship Agency, https://www.apprenticeship.gov/about-us/state-offices.
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.02 Definitions. For purposes of the apprenticeship requirements
the following definitions apply.
(1) A taxpayer, contractor, or subcontractor is considered to
``employ'' an individual if the individual performs services for the
taxpayer, contractor, or subcontractor in exchange for remuneration,
regardless of whether the individual would be characterized as an
employee or an independent contractor for other Federal tax
purposes.\23\
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\23\ This definition does not alter any of the existing legal
requirements pertaining to the proper classification of qualified
apprentices in registered apprenticeship programs as employees for
purposes of certain Federal laws and regulations.
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(2) The term ``journeyworker'' means ``journeyworker'' as defined
under 29 CFR 29.2.
(3) The term ``apprentice-to-journeyworker ratio'' means the ratio
described under 29 CFR 29.5(b)(7).
(4) The term ``construction, alteration, or repair'' means
``construction, prosecution, completion, or repair'' as defined under
29 CFR 5.2(j).
(5) The term ``State Apprenticeship Agency'' means ``State
Apprenticeship Agency'' as defined under 29 CFR 29.2.
.03 Example. A taxpayer employs workers and qualified apprentices
to construct a new facility. Construction of the facility begins in
calendar year 2023, and the construction of the facility is completed
in calendar year 2023. To satisfy the apprenticeship labor hour
requirement, the percentage of total labor hours to be performed by
qualified apprentices is 12.5 percent for 2023. The total labor hours,
as defined in Sec. 45(b)(8)(E)(i), for the construction of the
facility is 10,000 labor hours. The taxpayer employed qualified
apprentices that performed a total of 1,150 hours of construction on
the facility. On each day that a qualified apprentice performed
construction work on the facility for the taxpayer, the applicable
requirements for apprentice-to-journeyworker ratios of the Department
of Labor or the applicable State Apprenticeship Agency were met.
The taxpayer also hired a contractor to assist with construction of
the facility for 1,000 labor hours of the 10,000 total labor hours. The
contractor employed qualified apprentices that performed a total of 100
hours of construction on the facility. On each day that a qualified
apprentice performed construction work on the facility for the
contractor, the applicable requirements for apprentice-to-journeyworker
ratios of the Department of Labor or the applicable State
Apprenticeship Agency were met.
The taxpayer ensured that the taxpayer and the contractor each
employed 1 or more qualified apprentices because the taxpayer and
contractor each employed 4 or more individuals to perform construction
work on the qualified facility.
The taxpayer maintained sufficient records to establish that the
taxpayer and the contractor hired by the taxpayer satisfied the
Apprenticeship Labor Hour Requirement of 1,250 total labor hours for
the facility (12.5% of 10,000 labor hours), and the Apprenticeship
Ratio and Apprenticeship Participation Requirements. Under these facts,
the taxpayer will be considered to have satisfied the Apprenticeship
Labor Hour, Apprenticeship Ratio, and Apprenticeship Participation
Requirements of the statute with respect to the facility.
Section 5. Determining When Construction or Installation Begins
To determine when construction begins for purposes of Sec. Sec.
30C, 45V, 45Y, and 48E, principles similar to those under Notice 2013-
29 regarding the Physical Work Test and Five Percent Safe Harbor apply,
and taxpayers satisfying either test will be considered to have begun
construction. In addition, principles similar to those provided in the
IRS Notices regarding the Continuity Requirement for purposes of
Sec. Sec. 30C, 45V, 45Y, and 48E apply. Whether a taxpayer meets the
Continuity Requirement under either test is determined by the relevant
facts and circumstances.
Similar principles to those under section 3 of Notice 2016-31
regarding the Continuity Safe Harbor also apply for purposes of
Sec. Sec. 30C, 45V, 45Y, and 48E. Taxpayers may rely on the Continuity
Safe Harbor provided the facility is placed in service no more than
four calendar years after the calendar year during which construction
began.
For purposes of Sec. 179D, the IRS will accept that installation
has begun if a taxpayer generally satisfies principles similar to the
two tests described in section 2.02 of this notice, above, regarding
the beginning of construction under Notice 2013-29 (Physical Work Test
and Five Percent Safe Harbor). The relevant facts and circumstances
will ultimately be determinative of whether a taxpayer has begun
installation.
[[Page 73585]]
For purposes of Sec. Sec. 45, 45Q, and 48, the IRS Notices will
continue to apply under each respective Code section, including
application of the Physical Work Test and Five Percent Safe Harbor, and
the rules regarding the Continuity Requirement and Continuity Safe
Harbors.\24\
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\24\ Described in section 2.02 of this notice, above.
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Section 6. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq.,
and its attendant regulations, 5 CFR part 1320, require an agency to
consider the impact of paperwork and other information collection
burdens imposed on the public. The IRA allows taxpayers to take certain
increased credit amounts or an increased deduction if they satisfy the
Prevailing Wage Requirements, and Apprenticeship Requirements, where
applicable. The Department of Labor will collect the data needed to
issue wage rates for taxpayers in connection with facilities whose
construction, alteration, or repair is not subject to one or more
Davis-Bacon and Related Acts (DBRA), as facilities subject to the DBRA
are already accounted for in an existing collection approved by
OMB.\25\ DOL data collections needed to register apprentices and
apprenticeship programs are accounted for in an existing collection
approved by OMB.\26\
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\25\ OMB Control Number 1235-0023.
\26\ OMB Control Number 1205-0223.
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Under the PRA, an agency may not collect or sponsor an information
collection requirement unless it displays a currently valid Office of
Management and Budget (OMB) control number.\27\ This collection of
information is approved under OMB Control Number 1235-0034. The
Department of Labor estimates that it will take an average of 15
minutes for respondents to complete this collection of information,
including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. The information that the
Department of Labor will collect, as discussed in section 3.02 of this
notice, includes the type of facility, facility location, proposed
labor classifications, proposed prevailing wage rates, job descriptions
and duties, and any rationale for the proposed classifications. After
review, the Department of Labor will notify the taxpayer as to the
labor classifications and wage rates to be used for the type of work in
question in the area in which the facility is located. You may view the
Department of Labor's web page instruction here: https://www.dol.gov/agencies/whd/IRA.
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\27\ See 5 CFR 1320.8(b)(3)(vi).
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Section 7. Drafting Information
The principal authors of this notice are Alexander Scott and Jeremy
Milton of Associate Chief Counsel (Passthroughs & Special Industries).
However, other personnel from the Treasury Department and the IRS
participated in its development. For further information regarding this
notice contact Mr. Scott at (202) 317-6853 (not a toll-free call).
Melanie R. Krause,
Acting Deputy Commissioner for Services and Enforcement.
Approved: November 23, 2022.
Krishna P. Vallabhaneni,
Tax Legislative Counsel.
[FR Doc. 2022-26108 Filed 11-29-22; 4:15 pm]
BILLING CODE 4830-01-P
