137 
truth, the contractor or subcontractor for which the infor-
mation was submitted shall be prohibited from performing 
work on a covered project for a period of 5 years, and 
shall be further subject to penalties and sanctions, includ-
ing contract termination. 
(7) Any misrepresentation or omission included in the 
reporting required by this subsection shall constitute a 
false record or statement material to a false or fraudulent 
claim for purposes of subchapter III of chapter 37 of title 
31, United States Code. 
(f) WAIVER.—(1) Upon request by a contractor or 
recipient of assistance, the Secretary may adjust the ap-
prenticeship utilization requirement otherwise applicable 
to the contract for a specific covered project, when the 
contractor has provided documentary evidence of— 
(A) a demonstrated lack of availability of quali-
fied apprentices in the geographic area in which the 
contract will be performed; and 
(B) a good-faith effort on the part of the con-
tractor and its subcontractors to comply with the ap-
prenticeship utilization requirement. 
(2) A waiver granted under this subsection and the 
rationale of the Secretary concerned for granting the waiv-
er shall be public information and shall not be exempt 
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pamtmann on DSKBC07HB2PROD with BILLS
138 
from disclosure under section 552(b) of title 5, United 
States Code. 
(g) CONTRACTING.—The recipient of assistance shall 
cause to be inserted in a contract for a covered project 
stipulations to effectuate the requirements of this section. 
The stipulations shall provide that the contractor shall be 
jointly and severally liable for any violation of the require-
ments of this section that is committed by one of its sub-
contractors. 
(h) DEFINITIONS.—In this section: 
(1) The term ‘‘contractor’’ means a general 
contractor or other lead or prime contractor on a 
covered project. 
(2) The term ‘‘covered project’’ means construc-
tion, alteration, or repair work assisted in whole or 
in part under sections 111, 131, or 202 of this Act. 
(3) The term ‘‘labor hours’’ means the total 
number of hours devoted to the performance of con-
struction activities (as defined in Sector 23 of the 
North American Industry Classification System) by 
employees of the contractor and its subcontractors. 
The term excludes hours worked by foremen, super-
intendents, owners, and persons employed in a bona 
fide executive, administrative, or professional capac-
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pamtmann on DSKBC07HB2PROD with BILLS
139 
ity as defined in part 541 of title 29, Code of Fed-
eral Regulations. 
(4) The term ‘‘qualified apprentice’’ means an 
employee of a contractor or subcontractor partici-
pating in an apprenticeship program as that term is 
defined in section 3131(e)(3)(B) of the Internal Rev-
enue Code of 1986. 
(5) The term ‘‘Secretary’’ means the Secretary 
of Energy. 
(6) The term ‘‘subcontractor’’ means any per-
son or company, at any tier, that performs some or 
all of the obligations of the contractor on a covered 
project. 
(i) PREEMPTION.—Nothing in this section shall pre-
empt applicable State or local laws or policies that provide 
for additional skilled and trained workforce requirements 
on construction projects. 
SEC. 503. REQUIREMENTS APPLICABLE TO TAX INCENTIVE 
PROGRAMS. 
(a) IN GENERAL.—A taxpayer seeking a credit under 
sections 121, 125, 204, 205, 206, 207, 302, and 307 of 
this Act, shall submit to the Secretary of the Treasury, 
along with the taxpayer’s timely filed return, a declaration 
made under the penalties of perjury certifying compliance 
with the requirements under subsection (b). 
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140 
(b) LABOR
STANDARDS.—The Secretary of the 
Treasury shall require a taxpayer, as a condition of receiv-
ing a credit under a program enumerated in subsection 
(a), to satisfy each of the following requirements during 
the taxable year for which such credit is claimed and any 
other period in which construction, alteration or repair 
work was performed for purposes of qualifying for a credit 
set forth in subsection (a): 
(1) WAGES.—All laborers and mechanics em-
ployed by contractors or subcontractors in the per-
formance of construction, alteration, or repair work 
on any qualified facility, energy storage property, 
electricity generation facility, advanced nuclear 
power facility, qualifying advanced energy project, 
qualified offshore wind property, or other projects 
contemplated by the credit programs enumerated in 
subsection (a), shall be paid wages at rates not less 
than those prevailing on projects of a similar char-
acter in the locality as determined by the Secretary 
of Labor in accordance with subchapter IV of chap-
ter 31 of title 40, United States Code. With respect 
to the labor standards in this paragraph, the Sec-
retary of Labor shall have the authority and func-
tions set forth in Reorganization Plan Numbered 14 
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141 
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
3145 of title 40, United States Code. 
(2) LABOR
HOURS
FOR
QUALIFIED
APPREN-
TICES.— 
(A) IN
GENERAL.—All contractors and 
subcontractors engaged in the performance of 
construction, alteration, or repair work on any 
project described in paragraph (1) shall, subject 
to subparagraph (B), ensure that not less than 
15 percent of the total labor hours of such work 
be performed by qualified apprentices. 
(B) 
APPRENTICE-TO-JOURNEYWORKER 
RATIO.—The requirement under subparagraph 
(A) shall be subject to any applicable require-
ments for apprentice-to-journeyworker ratios of 
the Department of Labor or the applicable 
State apprenticeship agency. 
(C) PARTICIPATION.—Each contractor and 
subcontractor who employs 4 or more individ-
uals to perform construction, alteration, or re-
pair work on a covered project shall employ 1 
or more qualified apprentices to perform such 
work. 
(D) REPORTING.—While the project is on-
going, the contractor shall, with each payment 
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142 
application to the taxpayer, include a report 
with the following: 
(i) The names of all qualified appren-
tices and their apprentice registration or 
identification number. 
(ii) The number of qualified appren-
tices and labor hours worked by them, cat-
egorized by trade or craft. 
(iii) The number of journey level 
workers and labor hours worked by them, 
categorized by trade or craft. 
Such reports shall be included with the tax-
payer’s declaration under subsection (a). 
(E) MAINTENANCE
OF
RECORDS.—The 
taxpayer, its contractor, and subcontractors, 
shall maintain all reports and personnel records 
relating to the requirements of subparagraph 
(D) for a period of at least 3 years after final 
completion of the work. 
(F) SUBMISSION OF RECORDS.—The tax-
payer, its contractor, and subcontractors, shall 
immediately submit, upon request by the Sec-
retary of Energy, the documents described in 
subparagraphs (D) and (E). Failure to produce 
such documents shall result in penalties. 
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143 
(G) WAIVER.—The Secretary of the Treas-
ury may, upon request by a taxpayer, adjust 
the requirements of subsection (b)(2) for a spe-
cific project, when the taxpayer has provided 
documentary evidence of the following: 
(i) A demonstrated lack of availability 
of qualified apprentices in specific geo-
graphic areas. 
(ii) A good faith effort on the part of 
the taxpayer, its contractor and sub-
contractors to comply with the require-
ments of subsection (b)(2). 
Such waivers and the rationale of the Secretary 
of the Treasury for granting such waivers shall 
be public and shall not be exempt from disclo-
sure under section 552(b) of Title 5, United 
States Code. 
(H) DEFINITIONS.—For purposes of this 
subsection: 
(i) CONTRACTOR.—The term ‘‘con-
tractor’’ means a general contractor or 
other lead or prime contractor on a con-
struction project described in subsection 
(b)(2). 
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144 
(ii) LABOR HOURS.—The term ‘‘labor 
hours’’ means the total number of hours 
devoted to the performance of construction 
activities (as defined in Sector 23 of the 
North American Industry Classification 
System) by employees of the contractor 
and all subcontractors. The term excludes 
hours worked by foremen, superintendents, 
owners, and persons employed in a bona 
fide executive, administrative, or profes-
sional capacity as defined in part 541 of 
title 29, Code of Federal Regulations. 
(iii) QUALIFIED
APPRENTICE.—The 
term ‘‘qualified apprentice’’ means an em-
ployee participating in an apprenticeship 
program (as such term is defined in sec-
tion 3131(e)(3)(B) of the Internal Revenue 
Code of 1986). 
(iv) 
SUBCONTRACTOR.—The 
term 
‘‘subcontractor’’ means any person or com-
pany, at any tier, that performs some or 
all of the obligations of the contractor on 
a construction project described in sub-
section (b)(2). 
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145 
(I) PREEMPTION.—Nothing in this sub-
section shall preempt applicable State or local 
laws or policies that provide for additional 
skilled and trained workforce requirements on 
construction projects. 
(c) ENFORCEMENT.— 
(1) INVESTIGATIONS.—Upon receipt of a com-
plaint or its own initiative, the Secretary of Energy, 
in consultation with the Secretary of Labor, shall re-
quest and review the weekly payroll records of con-
tractors and subcontractors engaged in the perform-
ance of any construction, alteration, or repair work 
on projects described in paragraphs (1) and (2) of 
subsection (b), the reports set forth in subpara-
graphs (D) and (E) of subsection (b)(2), and inter-
view individuals employed by such contractors and 
subcontractors, to determine whether the require-
ments of paragraphs (1) and (2) of subsection (b) 
have been met. 
(2) PENALTIES.—The taxpayer shall be respon-
sible for compliance by any contractor or lower tier 
subcontractor performing any construction, alter-
ation, or repair work on projects described in para-
graphs (1) and (2) of subsection (b). If the Sec-
retary of Energy determines, upon receipt of a com-
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146 
plaint or its own initiative, that a project was not 
carried out in accordance with the requirements of 
this section, the taxpayer shall be liable to the De-
partment of the Treasury for the following: 
(A) For violations of subsection (b)(1), the 
taxpayer shall be liable for any unpaid wages. 
In addition, the taxpayer shall be liable to the 
Department of the Treasury for an administra-
tive penalty in the amount of not less than 
$1,000 but not more than $5,000 per each indi-
vidual not paid the proper prevailing rate. 
(B) For violations of subsection (b)(2), the 
taxpayer shall be liable to the Department of 
the Treasury in the amount of not less than 
$1,000, but not more than $5,000, for each 
hour of the apprenticeship utilization require-
ment that is not achieved. 
(3) FALSE STATEMENTS.—If the Secretary of 
Energy, in consultation with the Secretary of Labor, 
determines that any of the information in a declara-
tion under subsection (a) or report under subsection 
(b)(2)(D) and (E), contains false or misleading in-
formation that was provided knowingly or with reck-
less disregard for the truth, or omits information 
that was omitted knowingly or with reckless dis-
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147 
regard of the truth, the taxpayer shall no longer be 
eligible for any of the credits enumerated in sub-
section (a), and shall be fined not less than $5,000 
but not more than $10,000. 
(4) TRANSPARENCY.—Declarations under sub-
section (a) and reports under subsection (b)(2)(D) 
and (E) shall be publicly available and the informa-
tion contained therein shall not be exempt from dis-
closure under section 552(b) of title 5, United States 
Code. 
Æ 
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