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Energy Companies Shift Projects Ahead of Labor Rules for Credits

Nov. 9, 2022, 9:45 AM

Energy companies that want to take advantage of bonus tax credits in President Joe Biden’s tax-and-climate law and avoid new labor rules are expediting their projects before the requirements go into effect.

Developers and investors can qualify for increased tax credits starting Jan. 1, but only if they follow specific labor rules that will be enforced 60 days after guidance is released. Projects with construction started prior to Treasury and IRS guidance won’t be required to satisfy the labor rules.

The credits could increase fivefold to 30%, from a base of 6%.

“That’s a big game-changer,” said Devin Hall, a ...