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Biden Administration Sets Final Rules for Clean Energy Subsidies

With the goal of bringing green industry employment and earnings up to par with those in the oil and gas sector, the Biden Administration released final guidelines for additional clean energy subsidies on June 18, 2024. These regulations, which are a component of the 2022-passed Inflation Reduction Act, aim to guarantee that businesses requesting tax credits follow criteria related to employment quality. Companies that pay prevailing wages and use apprentices for projects can obtain five times the 6% base tax credit under guidelines set by the Treasury Department. This incentive aims to boost pay in the renewable energy sector, which has historically lagged behind industries.

The new rules are a key component of President Joe Biden's vision to combat climate change while creating millions of well-paying jobs. As Biden campaigns for re-election against former President Donald Trump, he highlights his economic policies, including these subsidies. The administration encourages companies to adopt project labor agreements to comply with the rules, ensuring wage and employment terms between trade unions and contractors. The Treasury Department’s Internal Revenue Service will allocate substantial resources to enforce compliance, promoting better wages and benefits in the renewable energy sector, which unions, a critical constituency for Biden, strongly support.

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