The Oklahoma Bar Journal May 2024

any, and any other documentation that may substantiate or extend a good faith effort extension.

in accordance with the registered apprenticeship program require ments. There are limited excep tions where a taxpayer will be treated to satisfy the apprentice ship requirements if the taxpayer satisfies the “Good Faith Effort Exception” or if the taxpayer makes certain penalty payments to the secretary of labor for the failure of satisfying the total qualified apprentice labor hours or participation requirements. 15 Similar to the prevailing wage requirements, taxpayers must maintain sufficient records to demonstrate compliance with the apprenticeship requirements. Taxpayers, owners, contractors and all subcontractors should implement processes to obtain and maintain records, including, without limitation, the regis tered apprenticeship program agreements for each qualified apprentice, the hours worked and the rates paid to each apprentice, written requests made to regis tered apprenticeship programs, correspondence with registered apprenticeship programs, correc tion or penalty payments made, if

wage requirements. When appli cable and required, taxpayers, owners, contractors and all tiers of subcontractors may be required to contact at least one DOL or state-approved apprenticeship program that has a presence in the geographic area of operation or that can be reasonably expected to transfer apprentices to the location of the facility and train apprentices in the specific occu pation needed and has a “usual and customary business practice” of entering into apprenticeship agreements with employers. 14 The proposed regulations specifically require apprenticeship requests to be in writing and include information concerning the dates of employment, occupation or classification requested, location and type of work to be performed, number of apprentices needed, number of hours the apprentices will work, name and contact information of the person submit ting the request and a statement that the request for apprentices is made with an intent to employ apprentices in the occupation for which they are being trained and

ADDITIONAL CLARITY FORTHCOMING

The final rule is expected to be published during 2024, and industry leaders are optimistic the final regulations will pro vide additional clarity relating to satisfying the PWA requirements. On Nov. 21, 2023, the IRS held a public hearing where 25 industry witnesses suggested improve ments to provide further clarity for taxpayers seeking to satisfy these requirements. Namely, the concerns expressed centered on recordkeeping burdens and potential abuse with the good faith effort exceptions. enhanced tax incentive is to increase clean energy production and ensure construction work ers on renewable energy projects receive fair wages while stimulat ing local economies. Critics argue the PWA requirements will raise CONCLUSION The primary goal of the PWA

The primary goal of the PWA enhanced tax incentive is to increase clean energy production and ensure construction workers on renewable energy projects receive fair wages while stimulating local economies.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL