The Biden administration released the final regulations for the Inflation Reduction Act's (IRA) prevailing wage and registered apprenticeships (PWA) provisions on Tuesday, June 18.

According to the US Department of the Treasury, the finalized rules will make employers in the renewable energy sector eligible for a fivefold increase in the available tax credit, which is also expected to benefit their employees.

The rules also intended to increase pay for the people working on IRA clean energy projects. 

Providing US Workers With Visible Benefits

The IRA provides $370 billion for solar, wind, and electric car subsidies and tax credits. According to Fox Business, the Treasury Department noted that since the IRA's implementation in 2022, announced investments in renewable energy projects have forecast the creation of over 270,000 jobs, and studies estimate that the legislation would generate over 1.5 million employment over the next decade.

According to The Hill, acting Labor Secretary Julie Su said the finalized rules would guarantee that tax credits deliver real, visible benefits to workers in communities nationwide. She pointed out that the government is trying to ensure that working people benefit from a sustainable energy future.

These regulations state that taxpayers may claim the higher credit if their rates are at least the prevailing wage, which is the average salary in a particular industry within a specific region.

Notably, government research indicates that almost 75% of IRA renewable energy projects are located in areas with lower median family incomes than the national average.

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Biden Administration Countering Republican Assertions

The Biden administration has aimed to counter Republican assertions that renewable energy employment would be lost in favor of initiatives to mitigate climate change and promote renewable energy jobs as job creators.

Although United Auto Workers (UAW) President Shawn Fain has acknowledged workers' concerns about job security, he has stressed that, in his view, it is a false choice to choose union employment over the shift to renewable energy.

In a statement, Senate Finance Chair Ron Wyden (D-Oregon) said that Republicans and their Big Oil backers had always fabricated the concept that fighting climate change would harm a large number of American jobs.

He added that if Republicans take power in 2025, they will try to undo the IRA's climate and energy reforms, including worker protections and benefits, The Hill reported.

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