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136 STAT. 1909 PUBLIC LAW 117–169—AUG. 16, 2022 with respect to such facility shall, subject to subpara- graph (B), be performed by qualified apprentices. ‘‘(ii) APPLICABLE PERCENTAGE.—For purposes of clause (i), the applicable percentage shall be— ‘‘(I) in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent, ‘‘(II) in the case of a qualified facility the construction of which begins after December 31, 2022, and before January 1, 2024, 12.5 percent, and ‘‘(III) in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent. ‘‘(B) APPRENTICE TO JOURNEYWORKER RATIO.—The requirement under subparagraph (A)(i) shall be subject to any applicable requirements for apprentice-to- journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency. ‘‘(C) PARTICIPATION.—Each taxpayer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a qualified facility shall employ 1 or more qualified apprentices to perform such work. ‘‘(D) EXCEPTION.— ‘‘(i) IN GENERAL.—A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer— ‘‘(I) satisfies the requirements described in clause (ii), or ‘‘(II) subject to clause (iii), in the case of any failure by the taxpayer to satisfy the requirement under subparagraphs (A) and (C) with respect to the construction, alteration, or repair work on any qualified facility to which subclause (I) does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of— ‘‘(aa) $50, multiplied by ‘‘(bb) the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construc- tion, alteration, or repair work on such quali- fied facility. ‘‘(ii) GOOD FAITH EFFORT.—For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under this paragraph with respect to a qualified facility if such taxpayer has requested quali- fied apprentices from a registered apprenticeship pro- gram, as defined in section 3131(e)(3)(B), and— ‘‘(I) such request has been denied, provided that such denial is not the result of a refusal by the taxpayer or any contractors or subcontrac- tors engaged in the performance of construction, alteration, or repair work with respect to such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or Effective dates. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00093 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw