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.

Browse by State
Find WDs for your project location
Browse by Trade
Rates for electricians, plumbers & more
Davis-Bacon FAQ
Common compliance questions answered
← Davis-Bacon Debarment: What It Means and How to Avoid It Understanding the Operating Engineer Prevailing Wage →

Related Articles

How Davis-Bacon Applies to Federal Building Renovations

Renovations and repairs on federal buildings are covered by Davis-Bacon just like new construction....

Davis-Bacon Fringe Benefits: What Contractors Must Pay

Davis-Bacon requires more than base wages — here's what fringe benefits are required and how to sati...

Certified Payroll Requirements Under Davis-Bacon

Weekly certified payroll submissions are mandatory on Davis-Bacon projects. Here's exactly what's re...