Projects that start construction within 60 days from the publication of the Notice are exempt from the requirements.
Key Points:
..Taxpayers now have until January 29, 2023, to start construction on a project to avoid application of the Prevailing Wage and Apprenticeship Requirements.
..A taxpayer can demonstrate beginning of construction using the Physical Work Test or Five Percent Safe Harbor methods (each as defined below) previously blessed by the IRS.
..After beginning construction, projects that rely on the Physical Work Test or Five Percent Safe Harbor must be completed within a safe harbor period ranging from four to six years, or prove that progress towards completion was continuous based on facts and circumstances.
..For projects that do not begin construction on or before January 29, 2023, the Notice explains how projects can satisfy the prevailing wage and apprenticeship requirements, largely following the well-established principles of the Davis-Bacon Act of 1931 (the Davis-Bacon Act).
Please see full publication below for more information.