“To maximize the 179D deduction on commercial buildings, taxpayers need to meet prevailing wage requirements. If met, the amount of the deduction increases five-fold, from $0.50–$1.00 when not met to $2.50–$5.00 per square foot when prevailing wage requirements are satisfied. Similarly for multifamily homes, the maximum §45L Credit quintuples from $500–$1,000 per residence to $2,500–$5,000 per home depending on qualification level. Single-family homes under the new IRA rules do not need to meet prevailing wage requirements to obtain the higher $2,500 to $5,000 45L credit.”
Link to article found here.