Bill > SB400

This bill provides a mechanism for employers, contractors, and subcontractors in the renewable clean energy sector to make voluntary retroactive wage payments to workers in order to qualify for larger tax incentives under the Inflation Reduction Act of 2022. Specifically, the bill allows these parties to retroactively pay workers the difference between actual wages paid and the prevailing wage for their locality, plus interest, without facing legal penalties, but only for renewable energy facility construction or repairs completed between January 1, 2023, and December 31, 2024. The retroactive wage payments must be solely for the purpose of applying for federal tax incentives and must be made voluntarily for work on facilities like solar panel installations, battery storage systems, and associated components. The bill does not apply to claims of retaliation, employee misclassification, or other legal violations unrelated to these retroactive wage payments. The provisions are limited in scope and will expire on January 1, 2029, with the goal of supporting California's renewable energy goals and helping taxpayers and employers access larger tax credits by ensuring workers receive prevailing wages.

Budget and Finance, Labor and Employment, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB400