Unions win big in new rules for clean energy workers

By Scott Waldman | 06/18/2024 01:08 PM EDT

Green employers who meet prevailing wage requirements can receive generous tax incentives.

Workers install solar panels onto a roof.

Workers install solar panels onto a roof at the Van Nuys Airport in Los Angeles. Richard Vogel/AP

The Biden administration is finalizing rules to ensure clean energy workers are paid a fair wage.

Paying a livable wage to the solar installers, battery factory workers and other employees of the clean energy economy is a key goal of the Inflation Reduction Act.

President Joe Biden worked to include union priorities in the law, and new rules rolled out Tuesday by the Treasury Department and the IRS will provide generous tax incentives to employers who meet prevailing wage requirements.


Prevailing wages are defined as hourly pay plus any fringe benefits received by workers; unions have long called on Washington policymakers to encourage their use.