This article explains when a wage determination must be refreshed for projects seeking Inflation Reduction Act (IRA) clean energy tax credits under prevailing wage and apprenticeship (PWA) requirements.
What Is a Wage Determination?
A wage determination sets the minimum hourly wage and fringe benefits required for workers on a project covered by the Davis–Bacon Act (DBA).
For IRA compliance, these rates apply to workers on qualifying energy projects and are critical for claiming the full tax credit.
Learn more: Davis–Bacon Wage Determinations (DOL.gov)
Key Rule: EPC Contract Date Locks Wage Determination
The applicable wage determination is set based on the date your EPC (Engineering, Procurement, and Construction) contract is executed.
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If the contract has a defined scope and timeline, you do not need to update the wage determination—even if new wage rates are issued after that date.
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Under the final IRA regulations, requests for supplemental wage determinations cannot be made more than 90 days before the date the contract between the taxpayer (or the taxpayer's designee, assignee, or agent) and a contractor is expected to be executed.
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Any supplemental wage determinations must be incorporated into the contract within 180 days of issuance, aligning with DBA rules at 29 CFR § 1.6(a)(3)(i).
This means the 180-day rule is about contract incorporation, not that wage determinations themselves expire.
References:
When Are You Required to Update the Wage Determination?
| Scenario | Refresh Required? | Why |
|---|---|---|
| Standard EPC contract (defined scope + duration) | ❌ No | Rates are locked at contract signing |
| Contract extension or new obligated work added | ✅ Yes | Change in scope or time triggers update |
| Indefinite-duration contract lasting more than 1 year | ✅ Yes (annually) | Annual updates required for open-ended contracts |
| New trades or classifications added | ✅ Yes | New wage determinations or conformances needed for additional work types |
| Supplemental wage determinations issued | ✅ Within 180 days | Must be incorporated into the contract |
Custom Work Classifications (Conformances)
If a project requires a trade or occupation not listed in the wage determination, contractors must request an additional classification (SF-1444 conformance).
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Conformances do not technically expire after 180 days, but they are project-specific and must reflect current wage conditions.
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Regulations (29 CFR § 5.5; WHD Field Operations Handbook) require that requests be submitted promptly and updated if wage determinations change.
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Agencies administering IRA projects (DOE, Treasury, IRS) often apply a practical 180-day “freshness” window. If the classification is still needed after six months, resubmittal or written confirmation from the contracting agency is recommended.
Best Practices
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Document your contract execution date clearly.
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Use the most recent wage determination available at time of signing.
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If your project scope changes, review whether a new wage determination applies.
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Incorporate supplemental determinations into contracts within 180 days.
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Submit conformances early and confirm validity if your project timeline extends.
Use this tool to search for the latest applicable rates: Wage Determination Search Tool (SAM.gov)
❓ FAQs
Q: Our EPC contract lasts more than 12 months. Do we need to update the wage determination every year?
A: Yes — if the contract is indefinite or does not have a defined end date, you must refresh the wage determination annually.
Q: What if we extend the project timeline but keep the same scope?
A: If the extension results in new work obligations or cost, a new wage determination is required. Simple schedule delays may not trigger a refresh.
Q: Can we use the same wage determination if we add a new subcontractor?
A: If a new subcontractor is added under an existing agreement between the EPC and Taxpayer, the same wage determination can be used. If the Taxpayer executes a new agreement with a new subcontractor, a new wage determination must be applied to that specific agreement. Additionally, if adding a new subcontractor to the existing EPC agreement requires a change order or contract amendment, than a new wage determination is to be applied to the entire EPC agreement.
Q: Do supplemental wage determinations or conformances expire after 180 days?
A: No — but supplemental wage determinations must be incorporated into contracts within 180 days, and conformances should be treated as time-sensitive. Resubmittal or confirmation may be needed if they are still in use after six months.