Comments

Transferability and Direct Pay Proposed Rule

SMACNA comments in support of the Internal Revenue Service’s (“IRS”) and the U.S. Treasury Department’s (“Treasury”) Proposed Rules, “Section 6418 Transfer of Certain Credits,” 88 Fed. Reg. 40496 (June 21, 2023) (hereafter “Transferability Proposed Rule”) and “Section 6417 Elective Payment of Applicable Credits,” 88 Fed. Reg. 40528 (June 21, 2023) (hereafter “Direct Pay Proposed Rule”). 

SMACNA fully supports the IRA, including but not limited to the Direct Pay (Section 6417) and Transferability (Section 6418) provisions.  Before these amendments, it was not possible to monetize federal tax credits generated by renewable energy projects outside of tax equity financing structures. The Direct Pay and Transferability Provisions allow new investors to enter the market, creating a broader and more diverse market to finance projects more quickly and affordably.

Transferability (Section 6418 Transfer of Certain Credits) Proposed Rule

SMART and SMACNA address transferability from two perspectives: first, as supporters of compliance with prevailing wage requirements for the protection of workers and to protect signatory contractors who comply with labor standards from underbidding by violators of these prevailing wage standards; and second, as supporters of small businesses who will benefit from tax credits and create “good”[1] union jobs in communities. 

Upgrading Standards for Registered Apprenticeship Programs

On behalf of our thousands of union members and signatory contractors, the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) and Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) would like to reiterate our appreciation for the opportunity to share our recommendations with the White House Task Force on Worker Organizing and Empowerment. The recommendations below address upgrading the standards for registered apprenticeship programs (RAPs) in 29 C.F.R. part 29 and supplement the recommendations in our December 6, 2022 letter to the Task Force, which focused primarily on requiring proof by an applicant for sponsorship of a RAP that the proposed program has “future sustainability,” i.e., it has the present and future financial and training capacity to provide broad-based, quality training to apprentices.

“Guidance for Grants and Agreements,” 88 Fed. Reg. 8374

SMACNA Comments in support of the Office of Management and Budget’s (OMB) Proposed Rule, Guidance for Grants and Agreements, which implements the Build America, Buy America Act (BABA Act), as part of the Infrastructure Investment and Jobs Act of 2021 (IIJA).

SMACNA fully supports the IIJA – and, in particular, the “Buy America” portions of the BABA Act – because the law ensures that federal infrastructure investments are completed with American-made “iron, steel, manufactured products, and construction materials.  The “Buy America” requirements reinvest tax dollars in America, which creates jobs, ensures goods are produced under appropriate environmental and workplace safety standards, and protects America’s Economic and national security.

Employee or Independent Contractor Classification Under the Fair Labor Standards Act

SMACNA comments in support of the DOL’s Notice of Proposed Rulemaking — Employee or Independent Contractor Classification under the Fair Labor Standards Act published Oct. 13, 2022. SMACNA believes that the construction industry needs stronger protections against the deliberate misclassification of workers as independent contractors — also called “worker status fraud.” SMACNA believes the DOL should develop rules specific to the construction industry to prevent unscrupulous contractors from deliberately misclassifying workers to gain an unfair advantage for law-abiding contractors that pay workers middle-class wages and benefits.

Upgrading Standards for Registered Apprenticeship Programs

On behalf of our thousands of union members and signatory contractors, the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) and Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) would like to reiterate our appreciation for the opportunity to share our recommendations with the White House Task Force on Worker Organizing and Empowerment. These new recommendations address upgrading the standards for registered apprenticeship programs (RAPs) in 29 C.F.R. part 29 and supplement the recommendations concerning apprenticeship standards in SMART’s June 25, 2021 letter (attached) to the Task Force.

Requirements in the Inflation Reduction Act of 2022

The IRA’s massive investments to fight the climate crisis will incentivize expansion of workforce training and creation of career-sustaining, middle class jobs by providing expanded tax credits for taxpayers that satisfy prevailing wage and apprenticeship requirements.

In Support of the Use of Project Labor Agreements for Federal Construction Projects

Comments on specific steps that the Treasury Department, individually or in coordination with the Wage and Hour Division (WHD) and/or Office of Apprenticeship (OA), may take to promote accountability, appropriate oversight, and enforcement and to determine which functions can appropriately be delegated to the taxpayer.

On Requirements in the Inflation Reduction Act of 2022

We recommend that the Treasury Department require that home energy auditors hold the following certifications accredited by the ICB in order to receive credit: Total Building Energy Audit Technician, Indoor Air Quality (IAQ)/Ventilation Verification Technician, Indoor Air Quality/Ventilation Verification Contractor and Indoor Air Quality/Ventilation Verification Supervisor. These certifications hold third-party accreditation status, have strong standards, and play a critical role in auditing and assessing the energy performance of buildings. The ICB is a recognized leader in providing certifications for the heating, ventilation and air conditioning (HVAC) industry.

Requirements in the Inflation Reduction Act of 2022

SMART and SMACNA support efforts to make the WD-10 form more user-friendly in furtherance of the DOL’s goal of increasing the amount of usable data submitted in wage surveys. These comments focus primarily on the two most significant changes to the proposed WD-10: elimination of peak week as an indispensable means to increasing the total amount of data on which prevailing rates are based; and inclusion of a ‘‘picklist’’ of “labor classifications” from which a submitter may choose, along with a creation of a Directory of Classifications and Sub-classifications.”