Prevailing Wages on ARRA and Infrastructure Bill Projects

May 15, 2026

The Infrastructure Investment and Jobs Act (IIJA, 2021) and Inflation Reduction Act (IRA, 2022) both include prevailing wage requirements as conditions for contractors to receive enhanced tax credits and funding.

IRA Prevailing Wage Requirements

Under the IRA, contractors on qualifying clean energy projects must pay prevailing wages to claim the full 30% Investment Tax Credit (ITC) or Production Tax Credit (PTC). Failure to pay prevailing wages reduces the credit to just 6%.

IIJA and Davis-Bacon

Most IIJA-funded construction projects are subject to Davis-Bacon through applicable Related Acts (Federal-Aid Highway Act, Federal Transit Act, etc.). Contractors should expect standard Davis-Bacon compliance requirements on infrastructure projects.

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