Department of Treasury releases guidance regarding labor requirements for clean energy tax credits
On Aug. 29, the Department of the Treasury and IRS released proposed rules governing implementation of many energy-related tax provisions from the Inflation Reduction Act of 2022. Taxpayers who want to take advantage of the full benefits of these provisions must ensure employees who perform work on qualifying projects are paid prevailing wages under Department of Labor rules and must use some employees who participate in Registered Apprenticeship programs. The prevailing wage and apprenticeship requirements have been in effect since Jan. 29, and the new proposed rules are aimed at providing more clarity and direction to taxpayers. These provisions apply to the Energy Efficiency Commercial Building tax deduction under Section 179D and the Investment Tax Credit under Section 48 for commercial solar energy—the two provisions most relevant to the roofing industry. Public comments regarding the regulation are due Oct. 30. View additional information.
NLRB issues Cemex decision regarding union representation
On Aug. 25, the National Labor Relations Board issued a decision in the case of Cemex Construction Materials Pacific LLC, which will result in a new framework for determining when employers are required to bargain with unions without a representation election. Under the new standard, when a union claims it has majority support, an employer has two options: it can voluntarily recognize the union and begin to bargain with it as the exclusive representative of the unit, or it can file a petition for an election with the board but must do so within two weeks. If the two-week window is missed, the board can issue a bargaining order requiring the employer to recognize and bargain with the union. According to the board, the new framework will “effectuate employees’ right to bargain through representatives of their own choosing and improve the fairness and integrity of Board-conducted elections.” However, there is concern within the business community that the new framework could open the door to the use of so-called “card check” procedures rather than secret ballot elections for union representation.
Department of Labor and governors announce partnership regarding workforce development
The Department of Labor and National Governors Association announced a new partnership between federal and state officials, state workforce development boards and other stakeholders to improve workforce planning processes. The Workforce Strategic Planning Collaborative will be led by DOL’s Employment and Training Administration and the NGA’s Center for Best Practices to make strategic improvements in program delivery and maximize investments from recently passed federal laws, such as the Infrastructure Investment and Jobs Act, CHIPS and Science Act and Inflation Reduction Act. The venture will focus on aligning state and federal resources, providing technical assistance and elevating best practices during the development of the 2024 Workforce Innovation and Opportunity Act State Plan, which governs workforce training programs at the state level.
