The Inflation Reduction Act (IRA) requires contractors to use registered apprentices on qualifying projects. Apprentix helps you stay compliant.
What does the IRA require for apprenticeships?
For qualifying projects, at least 15% of total construction labor hours must be performed by registered apprentices.
How does Apprentix help me meet this requirement?
Apprentix provides non-union contractors with a nationwide, affordable, and fully compliant registered apprenticeship program sponsor through the U.S. Department of Labor (DOL).
How many apprentice hours are required?
Minimum: 15% of total construction labor hours
Applies to: Qualifying projects such as renewable energy builds over 1MW
Do I need to hire apprentices directly?
Yes. All apprentices must be W2 employees.
If you currently use 1099 labor, those workers must be converted to W2 employees before being registered as apprentices.
You may also work with subcontractors who use apprentices registered under Apprentix.
Can I call anyone an apprentice?
No. Only registered apprentices in a DOL-approved program count toward IRA requirements. Apprentix ensures all apprentices in our program are properly registered.
What happens if I don’t meet the requirement?
Projects that fail to meet the IRA’s 15% requirement may lose access to enhanced tax credits.
Contractors may also face penalties unless they can document a good faith effort to comply.
How is the 15% measured?
The 15% requirement is measured across the entire project.
However, apprentice hours only count when you are also meeting the ratio requirement, which is measured daily.
Ratio requirement: 1 journeyman for every apprentice onsite each day.
What if I don’t meet the ratio requirement?
If you have too many apprentices compared to journeymen (e.g., 1 journeyman + 3 apprentices in a day):
You must pay the apprentices the full journeyman wage for that day.
However, those hours will not count toward the IRA’s 15% apprentice requirement, since the ratio was not met.
👉 To get credit toward the 15%, you must meet the 1:1 ratio requirement.
✅ Apprentix helps you stay compliant with the IRA’s apprenticeship rules while maximizing your eligibility for enhanced tax credits.