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N.M. leaders urge Biden Administration to provide clean energy tax credits

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WASHINGTON D.C. — U.S. Senator Martin Heinrich, D-N.M., a member of the Senate Energy and Natural Resources Committee, and U.S. Senator Ben Ray Luján, D-N.M., sent a letter urging the Biden administration to adopt rules that facilitate smooth implementation of the Inflation Reduction Act’s prevailing wage and registered apprenticeship tax credits.

The tax credits are intended to provide tens of thousands of electricians, metalworkers, welders, and other workers with good pay, training, and apprenticeships to build the clean energy workforce pipeline for the next generation. In the letter, the senators pressed the administration to make the process of receiving these tax credits smooth and efficient so that the law can reach its full potential.

“The purpose of the IRA credits is to not only spur the creation of new clean, affordable energy, but to employ tens of thousands of electricians, metalworkers, welders and other workers in high-paying jobs, with training and apprenticeships to build the pipeline of workers for the next generation. We write today to encourage the Treasury to adopt rules that empower workers, raise wages, and set our workers up for success for years to come,” the senators wrote in a letter to Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel.

In the letter, the senators made several recommendations to ensure that workers are able to take full advantage of the new IRA tax credits. Those recommendations include treating project labor agreements as evidence of compliance with the IRA’s prevailing wage and apprenticeship requirements, establishing a front-end compliance monitoring system, and strengthening the good faith effort exception to PWA requirements.

The letter was led by U.S. Senators Chris Murphy, D-Conn., Richard Blumenthal, D-Conn., and Bob Casey, D-Pa.

Alongside Heinrich and Luján, the letter was signed by U.S. Senators Tammy Baldwin, D-Wis, Corey Booker, D-N.J., Sherrod Brown, D-Ohio, Laphonza Butler, D-Calif., Tammy Duckworth, D-Ill., Richard Durbin, D-Ill., John Fetterman, D-Pa., Mazie Hirono, D-Hawaii, Amy Klobuchar, D-Minn., Ed Markey, D-Mass., Bob Menendez, D-N.J., Jeff Merkley, D-Ore., Alex Padilla, D-Calif., Gary Peters, D-Mich., Jack Reed, D-R.I., Jacky Rosen, D-Nev., Bernie Sanders, I-Vt., Brian Schatz, D-Hawaii, Tina Smith, D-Minn., Debbie Stabenow, D-Mich., Chris Van Hollen, D-Md., Raphael Warnock, D-Ga., Elizabeth Warren, D-Mass., Peter Welch, D-Vt., and Sheldon Whitehouse, D-R.I..

By Sen. Martin Henirch