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The U.S. is currently home 3.46 million Americans who work across the clean vehicle, renewable energy, energy efficiency, battery storage, grid modernization, and biofuel sectors, according to the latest annual employment analysis from BW Research and E2. And in just the first two years of the IRA, businesses announced $130 billion to fund nearly 340 major clean energy and clean vehicle projects that are expected to hire at least 110,000 new, mostly permanent, workers, according to analysis by E2.

The economic benefits from these projects reach well beyond the direct investments and jobs, however. According to separate modeling by BW Research, the projects announced in the first two years of the IRA will create 621,000 direct and indirect new jobs – including 154,000 permanent jobs – over the next five years. Just during the construction phase alone, these new projects would directly and indirectly add $237.5 billion to U.S. GDP; create $169.4 billion in new wages for workers, and generate nearly $50 billion in new tax revenue for federal, state, and local governments.

To gauge business sentiment on how repealing or rolling back the IRA would impact business investment, hiring, and expansion plans, BW Research focused its outreach on firms working with the following technologies: energy efficiency of buildings, renewable electricity generation, energy storage, grid, renewable fuels, and electric or alternative transportation. The survey captured impacts not just on new businesses or projects since the laws were signed but on long-established companies, with more than 60 percent of the surveyed firms saying they have been in business in the clean energy space for more than ten years.

The executive interviews conducted in parallel with the survey helped reveal other common themes that business owners and decision-makers have seen since the passage of the IRA, as well as key issues for them as they contemplate their businesses’ future. The stakeholder engagement process involved energy businesses in different technologies and regions of the country.

Lastly, the repeal or rollback of the IRA would have impacts that extend far beyond hiring, investment, and expansion plans. In addition to the benefits to businesses created by the IRA, the policy has sent a clear market signal for companies to invest, innovate, and expand in America.

If the policy is repealed, some executives surveyed said they would have to relocate their companies to another country. Others said they would go out of business entirely. Rural areas and small communities across America would be hurt the worst, since rural areas have seen the biggest uptick in clean energy projects, investments and jobs since the IRA.

Key Findings

• Repealing the IRA would hurt business or revenue.

• • More than half (53 percent) of firms said they would lose business or revenue as a direct result of an IRA repeal.
  • About 27 percent said they would lose projects or contracts.
  • About 21 percent of impacted firms said they would likely exit the clean energy space.
  • About 11 percent of firms said they would close their business entirely,
  • Nearly 9 percent of firms said they would have to relocate to another country.

• Businesses would have to lay off employees and cut wages.46 million Americans currently work in clean energy sectors and nearly 150,000 new jobs are being added every year.
  • About 21 percent of firms said they would have to lay off workers if the IRA is repealed.
  • Nearly 15 percent of firms said they would have to lay off 10 or more workers;
  • More than 10 percent of firms said they would have to lay off 25 or more workers.

• • About 13 percent said they’d have to freeze wages or rescind offers to prospective employees.

• The IRA is very important to business growth.
  • About 85 percent of respondents said the IRA was “very important” or “somewhat important” to growth.
  • Nearly 60 percent of respondents said have worked on, produced goods, or offered services related to clean energy projects directly impacted or funded by the IRA.
  • About 48 percent said that at least half of their business came from IRA-related projects.

Other Key Findings
(based on survey results and stakeholder interviews)

• The IRA has had a major impact on reducing risk and uncertainty in clean energy markets. A repeal would lead to drastic scaling back of projects and affect investor confidence in the industry.
• Rural areas and small communities would experience the largest negative effects of a repeal of the IRA. Rural regions have seen the biggest uptake in projects and economic benefits since the passing of the IRA.
• A repeal of the IRA would disrupt the rapid increase in solar and battery installations as a result of higher installation and materials costs, lower supply as smaller companies leave the market, and lower demand from customers.
• The IRA has led to the creation of good-quality jobs offering transition pathways for workers in fossil fuels and other industries, particularly in rural areas. The high rate of new project installations, also largely prevalent in rural areas, has brought about a high demand for skilled energy workers.

Summary:

In the first two years under the IRA, businesses announced $130 billion in investments in 338 major clean energy and clean vehicle projects that are expected to create at least 110,000 jobs, according to E2. These projects include factories that produce electric vehicles, batteries, solar panels, wind turbine parts and other goods that benefit from tax credits and other policies created by the IRA.

But the economic benefits from these projects reach well beyond the direct investments and jobs. This analysis is designed to measure the broader indirect and induced economic benefits and the multiplier effect from the investments in these IRA-fueled clean economy projects.

According to this modeling, if completed the projects announced in the first two years of the IRA will create 621,000 direct and indirect new jobs – including 154,000 permanent jobs— throughout the economy over the next five years. This would add $237.5 billion to U.S. GDP; create $169.4 billion in new wages for workers and generate nearly $50 billion in new tax revenue for federal, state, and local governments.

This report builds on the research published in 2023 by E2 and BW Research, detailing the overall economic impacts of the 210 major clean economy projects announced in the first year of the IRA. In the second year of the IRA, an additional 128 clean energy projects were announced.

This analysis uses the original $130 billion in estimated capital expenditures that companies announced in investments for new developments and extrapolates another $32 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information.

Secondary economic benefits extend throughout the economy. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a nationwide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month.

E2 Clean Economy Works project tracking. Available at https://e2.org/announcements/.

Key Findings

This modeling shows that (if all projects are completed) the 338 major projects tracked by E2 between August 2022 to August 2024 will create or support more than 621,000 jobs, including 467,000 construction jobs each year during construction and another 154,000 jobs each year after that.

While the under construction, these projects will add $237.5 billion to the nation’s GDP, more than the U.S. telecommunications sector adds to GDP annually, and another $20.4 annually once they are up and running—more than the nation’s textile manufacturing industry.

Additionally, these projects will result in $49.8 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $4.4 billion annually after that.

COMBINED ECONOMIC IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED OVER TWO YEARS OF THE IRA

• • $162 BILLION in total private capital investments
    +$17.5 BILLION in annual investments during operational life of projects

• • $169.4 BILLION in labor income during construction phase
    +$12.9 BILLION in labor income annually during operational life of projects

• • $237.5 BILLION added to U.S. GDP during construction phase
    +$20.4 BILLION added to U.S. GDP annually during operational life of projects

• • $49.8 BILLION in tax revenue generated during construction phase
    +$4.4 BILLION in tax revenue generated annually during operational life of projects

• • 467,000 JOBS each year for 5 years during construction phase
    +154,000 JOBS supported annually during operational life of projects

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

Two years after the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, companies have announced at least 334 major new clean energy and clean vehicle projects across the country, according to E2’s findings. Of the announcements, 278 included estimates on the number of jobs the projects are expected to create and/or investment amounts. Based on this information, the projects, if completed, would create 109,278 new jobs and bring in $126 billion in private investments.

The 118 announcements in the IRA’s second year are expected to create a combined 34,600 jobs. This extends a wave of IRA-fueled job gains unequaled in the clean energy sector’s history.

The number of major IRA-related clean energy projects announced during the past twelve months declined from the previous year, when 216 projects were announced (211 initially reported). This decline in announcements, while not unexpected, comes amid the uncertainty of the 2024 elections and more than 40 attempts to roll back or reduce parts of the IRA by the U.S. House.

Still, the clean energy projects, jobs and investments related to the IRA are bringing new opportunities and economic benefits to communities across the country. Forty states and two out of three congressional districts are home to at least one announcement. Growth from post-IRA projects tracked by E2 is particularly pronounced in Republican-led districts and states in the South. Nearly 60 percent of the announced projects – representing 85 percent of the investments and 68 percent of the jobs – are in Republican congressional districts. This despite the fact that no Republican voted for the legislation.

Sectors throughout the clean energy industry are expanding. Over the past two years, automakers and their suppliers have announced 132 new or expanded electric vehicle and battery plants and related factories in 23 states, including 39 clean vehicle manufacturing projects in the past year. Solar panel equipment manufacturers are building or expanding 53 factories in 23 states (24 projects in the past year). Renewable energy operators are planning 24 new large-scale wind and solar generation projects across 22 states (10 projects in the past year), while at least 51 new battery/storage projects are in development (19 in the past year, in nearly as many states).

Highlights

* 99 of the 334 announcements did not include investment estimates and 98 did not include job estimates.

• More than 90 percent of all projects announced since the IRA are in the manufacturing sector.
• Five states are home to 20 or more projects: Michigan, Georgia, South Carolina, Texas and North Carolina. Six others are home to at least 10: Ohio, Tennessee, California, New York, Indiana and Arizona. Three-dozen states are home to at least two projects.
• Clean vehicles accounted for more than a third of all projects announced within the past year (45 projects announced).
• Renewable energy companies announced 31 solar panel and equipment factories and major solar projects in the IRA’s second year, and at least four wind turbine factories or major wind projects.
• Red states and Republican congressional districts are benefitting the most from the IRA. In its full two-year history, more than half of all projects were in Republican districts, and 19 of the top 20 congressional districts for clean energy investments are held by Republicans. Nearly 40 percent of all 435 U.S. congressional districts are home to at least one announced project.
• The top congressional districts for clean energy investments are North Carolina’s 9th district with nearly $9.9 billion, represented by Republican Rep. Richard Hudson; Georgia’s 11^th congressional district with $6.6 billion, represented by Republican Rep. Barry Loudermilk; and Nevada’s 2^nd congressional district with $6.6 billion, represented by Republican Rep. Mark Amodei.
• The top congressional districts that would see the largest clean energy employment growth from new clean energy projects are North Carolina’s 9th district with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk; Nevada’s 2^nd congressional district with $5,050 jobs, represented by Republican Rep. Mark Amodei; and South Carolina’s 2^nd congressional district, represented by Republican Rep. Joe Wilson.
• The congressional districts that are home to the most projects announced are: Ohio’s 9^th congressional district with eight projects, represented by Democratic Rep. Marcy Kaptur; Georgia’s 1^st congressional district with six projects, represented by Republican Rep. Earl Carter; North Carolina’s 9^th congressional district with six projects, represented by Republican Rep. Richard Hudson; and South Carolina’s 5^th congressional district with six projects, represented by Republican Rep. Ralph Norman.
• Foreign companies led or were involved with about 160 projects announced since the IRA became law – nearly identical to the number of announced projects from U.S.-based companies.
• South Korean companies have announced the most projects – about three-dozen in the past two years. Companies based in Michigan and California led announcements from domestic-based companies, with 22 each.

Previous Clean Economy Works Monthly Reports:

• Clean Economy Works – June 2024
• Clean Economy Works – May 2024
• Clean Economy Works – April 2024
• Clean Economy Works – March 2024
• Clean Economy Works – February 2024
• Clean Economy Works – January 2024
• Clean Economy Works – December 2023
• Clean Economy Works – November 2023
• Clean Economy Works – October 2023
• Clean Economy Works – September 2023
• Clean Economy Works – One-Year Review
• Clean Economy Works – July 2023
• Clean Economy Works – June 2023
• Clean Economy Works – May 2023
• Clean Economy Works – April 2023
• Clean Economy Works – March 2023
• Clean Economy Works – February 2023

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments nationwide for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling expects the 8 large-scale project announced in Arizona tracked by E2 between August 2022 and August 2023 to create or support more than 18,700 jobs and generate billions of dollars in new wages, tax revenue, and economic growth.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a statewide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month.

Key Findings

This report details the economic impacts resulting from the clean energy investments in Arizona that were announced after the passing of the IRA, allowing for a more detailed examination of the economic benefits that the clean energy investments bring to the state. The 8 major Arizona projects tracked by E2 between August 2022-August 2023 will create or support more than 18,700 jobs, including 15,800 jobs each year during construction and another 2,900 jobs each year after.

These private-sector investments and jobs will add $6.8 billion to Arizona’s Gross State Product (GSP) while the projects are under construction, and another $434.6 million annually once they are up and running.

Additionally, these projects will result in $1.4 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $80.0 million annually after.

COMBINED JOBS, WAGE, TAX AND GSP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments nationwide for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling expects the 10 large-scale project announced in New York tracked by E2 between August 2022 and August 2023 to create or support more than 7,000 jobs and generate tens of billions of dollars in new wages, tax revenue, and economic growth.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a statewide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month

Key Findings

This report details the economic impacts resulting from the clean energy investments in New York that were announced after the passing of the IRA, allowing for a more detailed examination of the economic benefits that the clean energy investments bring to the state. The 10 major New York projects tracked by E2 between August 2022-August 2023 will create or support more than 8,000 jobs, including 6,000 jobs each year during construction and another 1,400 jobs each year after.

These private-sector investments and jobs will add $3.2 billion to New York’s Gross State Product (GSP) while the projects are under construction, and another $224.5 million annually once they are up and running.

Additionally, these projects will result in $736.0 million in new tax revenues for federal, state, and local governments while under construction, and an additional $55.7 million annually after.

COMBINED JOBS, WAGE, TAX AND GSP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments nationwide for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling expects the 18 large-scale Michigan project announcements tracked by E2 between August 2022 and August 2023 to create or support nearly 28,000 jobs and generate tens of billions of dollars in new wages, tax revenue, and economic growth.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a statewide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month

Key Findings

This report details the economic impacts resulting from the clean energy investments in Michigan that were announced after the passing of the IRA, allowing for a more detailed examination of the economic benefits that the clean energy investments bring to the state. The 18 major Michigan projects tracked by E2 between August 2022-August 2023 will create or support more than 27,900 jobs, including 21,700 jobs each year during construction and another 6,200 jobs each year after.

These private-sector investments and jobs will add $9.7 billion to Michigan’s Gross State Product (GSP) while the projects are under construction, and another $706.7 million annually once they are up and running.

Additionally, these projects will result in $1.9 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $165.0 million annually after.

COMBINED JOBS, WAGE, TAX AND GSP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments nationwide for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling expects the nine large-scale North Carolina project announcements tracked by E2 between August 2022 and August 2023 to create or support 30,000 jobs and generate tens of billions of dollars in new wages, tax revenue, and economic growth.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a statewide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month

Key Findings

This report details the economic impacts resulting from the clean energy investments in North Carolina that were announced after the passing of the IRA, allowing for a more detailed examination of the economic benefits that the clean energy investments bring to the state. The nine major North Carolina projects tracked by E2 between August 2022-August 2023 will create or support nearly 30,000 jobs, including 24,600 jobs each year during construction and another 5,400 jobs each year after.

These private-sector investments and jobs will add $10.2 billion to North Carolina’s Gross State Product (GSP) while the projects are under construction, and another $593.5 million annually once they are up and running.

Additionally, these projects will result in $2.1 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $124.2 million annually after.

COMBINED JOBS, WAGE, TAX AND GSP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments nationwide for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling for the 19 major Georgia projects tracked by E2 between August 2022 and August 2023 expects the projects to create or support almost  39,000 jobs and generate tens of billions of dollars in new wages, tax revenue, and economic growth.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a statewide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month

Key Findings

This report details the economic impacts resulting from the clean energy investments in Georgia that were announced after the passing of the IRA, allowing for a more detailed examination of the economic benefits that the clean energy investments bring to the state. The 19 major Georgia projects tracked by E2 between August 2022 and August 2023 will create or support 38,600 jobs, including 31,800 jobs each year during construction and another 6,800 jobs each year after that. 

These private-sector investments and jobs will add $13.9 billion to Georgia’s Gross State Product (GSP) while the projects are under construction, and another $926.5 million annually once they are up and running. 

Additionally, these projects will result in $2.6 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $175.4 million annually after that. 

COMBINED JOBS, WAGE, TAX AND GSP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

The positive impacts of the IRA’s historic investment in America’s rural economic growth and resilience are transformative. In its first year, the IRA incentives have spurred 52 major rural manufacturing projects that are projected to create 67,000 rural jobs and nearly $2 billion in worker income, creating viable new career opportunities and revenues to sustain rural communities. In addition to spurring growth, these IRA funds are essential to ensuring that rural America has access to the benefits of the clean economy transition and that our farms and farming communities are more profitable and more resilient. Farmers and rural workers across multiple industries, as well as rural consumers, strongly favor these investments in clean energy, infrastructure, and agricultural resilience. The federal clean economy investments in the IRA position rural communities as leaders in building a thriving 21st century American economy. 

Summary:

This analysis uses the original $86 billion in estimated capital expenditures that companies announced in investments for new developments and extrapolates another $20 billion in additional capital expenditures for project announcements that did not include a dollar amount or required an updated estimate based on available information. In addition to the direct benefits of these expenditures, new modeling from BW Research measures the broader economic benefits and the multiplier effect of the investments and jobs expected if the 210 announced projects were completed over the next five years.

When these broader economic benefits are factored in, BW’s modeling expects 403,000 new jobs—including nearly 100,000 permanent jobs—would be created and supported throughout the economy, $156 billion added to U.S. GDP, $111 billion in new wages for workers, and more than $32 billion generated in tax revenue for federal, state, and local governments. These benefits will continue long after the projects are built. For more details, see Key Findings below.

These secondary economic benefits are far-reaching. When new clean energy projects and clean vehicle factories and thousands of new jobs come to a community, local restaurants sell more meals. Schools, police departments and local public works projects benefit from increases in local tax revenues. Local manufacturers and wholesalers sell more goods to feed the growing local supply chain. And small businesses such as accounting firms, construction contractors, landscaping companies and caterers see new revenue streams.

Together, these direct and indirect jobs and investments tell a nationwide story of opportunity for domestic manufacturing, clean energy production, transportation and infrastructure modernization and American ingenuity, thanks to the clean energy incentives and investments made possible by the IRA.

They are also just the beginning as E2 continues to track new projects being announced every month

Key Findings

This modeling shows that (if all projects are completed) the 210 major projects tracked by E2 between August 2022-August 2023 will create or support more than 400,000 jobs, including 303,500 construction jobs each year during construction and another 99,600 jobs each year after that.

These private-sector investments and jobs will add $155.5 billion to the nation’s GDP while the projects are under construction, and another $13.1 billion annually once they are up and running.

Additionally, these projects will result in $32.5 billion in new tax revenues for federal, state, and local governments while under construction, and an additional $2.9 billion annually after that.

COMBINED JOBS, WAGE, TAX AND GDP IMPACTS OF MAJOR CLEAN ENERGY PROJECTS ANNOUNCED IN FIRST YEAR OF THE IRA

TOTAL INVESTMENTS INTO AND ANNUAL JOBS SUPPORTED BY CLEAN ENERGY PROJECTS, DETAILED BY ENERGY SECTOR

Summary:

One year after the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, private industry has announced at least 210 major new clean energy and clean vehicle projects across the country, according to E2’s findings. Based on publicly available information from 178 of the 210 announcements that included new jobs and/or investment estimates, if completed the projects would create at minimum 74,181 new jobs and bring in $86.3 billion in private investments.

These announcements are expected to drive a major boost in new clean energy jobs in the coming years, compared to clean energy employment growth before the IRA. Not including 2020 job losses fueled by COVID-19 shutdowns and ensuing economic crisis, clean energy has averaged an annual increase of 117,000 jobs since 2018. The jobs and investments estimated in the more than 200 announcements would represent a sizable increase in annual employment growth in clean energy and is indicative of a coming  wave of job gains on the horizon unequaled in the history of the clean energy sector — presuming normal employment gains based on overall market growth, projects announced and in development before the IRA was signed, and smaller investments and new projects that are unable to be tracked by this analysis. In addition, only 142 of the announcements included a temporary and/or permanent job creation estimate — leaving one-third of new announcements without any employment estimates as of the time of this analysis.

Highlights

* 54 of the 208 announcements did not include investment estimates and 68 did not include job estimates.

• Electric vehicle and battery manufacturing accounted for more than half of all new projects, with 115 battery and EV factories or expansions announced.
• Renewable energy companies announced 44 solar panel and equipment factories and major solar projects, and at least 18 wind turbine factories or major wind products.
• Red states and Republican congressional districts are benefitting the most from the IRA. More than half of all projects were in Republican districts, and 18 of the top 20 congressional districts for clean energy investments are held by Republicans. About 60 percent of all jobs and investments announced were in Republican districts.
• About 28 percent of congressional districts are home to at least one announced project.
• The top congressional districts for clean energy investments are North Carolina’s 9th district with nearly $9.9 billion, represented by Republican Rep. Richard Hudson, Georgia’s 11th congressional district with $6.6 billion, represented by Republican Rep. Barry Loudermilk, and Nevada’s 2nd congressional district with $6.6 billion, represented by Republican Rep. Mark Amodei.
• The top congressional districts that would see the largest clean energy employment growth from new clean energy projects are Georgia’s 11th district with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk, Nevada’s 2nd congressional district with 5,050 jobs, represented by Republican Rep. Mark Amodei, and South Carolina’s 2nd congressional district with 4,600 jobs, represented by Republican Rep. Joe Wilson.
• The top congressional districts that are home to the most projects announced are Ohio’s 9th congressional district with 6 projects, represented by Democratic Rep. Marcy Kaptur, and Georgia’s 1st congressional district with 5 projects, represented by Republican Rep. Earl Carter. Six other districts are home to four announced projects.
• Foreign companies led or were involved with nearly 100 announced projects. U.S.-based companies led or were involved with 118 announced projects.
• South Korean companies announced the most projects – more than two dozen. Companies based in Michigan, California, and North Carolina led announcements from domestic-based companies.
• Manufacturing accounted for 171 projects, 91 percent of investments and 95 percent of jobs announced.
• Seven states are home to 10 or more projects, including Georgia, South Carolina, Michigan, Ohio, Tennessee, Texas, and New York. A total of 31 states are home to at least 2 projects.

Previous Clean Economy Works Monthly Reports:

• Clean Economy Works – July 2023
• Clean Economy Works – June 2023
• Clean Economy Works – May 2023
• Clean Economy Works – April 2023
• Clean Economy Works – March 2023
• Clean Economy Works – February 2023

Summary:

Innovation is at the heart of America’s farm tradition. Having proven over more than two centuries that they can thrive while dealing with uncertainty and unforeseen challenges, adapt to new circumstances often out of their control, and innovate practical solutions to ongoing change, America’s farmers are proven entrepreneurs. Whether it’s rising input costs, fluctuating commodity prices and tariffs, or market disruptions based on events thousands of miles away, farmers are skilled at seizing the opportunities in adversity.

Now the agriculture industry increasingly faces unprecedented challenges from severe and unseasonable weather, putting practices that were effective in past decades in question. Out of necessity, farmers and ranchers are experimenting with and adopting forward-thinking methods to ensure that their operations, both large and small, survive and thrive in the face of these swiftly evolving circumstances.

More than ever, American farmers need the support and freedom to innovate. But U.S. federal farm policies do not sufficiently incentivize, and in many cases hinder, this farmer-led entrepreneurial activity. The 2023 Farm Bill represents a timely and strategic opportunity to greatly increase investment and innovation in new practices and technologies that:

• restore and increase soil health
• reduce farm input costs
• boost crop resilience to extreme weather events while reducing crop loss risk and insurance costs
• store atmospheric carbon and mitigate climate change
• enhance additional ecosystem benefits such as reduced soil erosion and input runoff, improved water and air quality, and increased biodiversity
• bolster economies of hard-hit communities in rural America

These economic and environmental benefits can be achieved through three policies in the 2023 Farm Bill that will incentivize and promote the freedom to innovate that so many farmers are demanding to manage their operations for maximum health and productivity.

The next decade represents a critical window to enact policies that address the climate challenge. It’s imperative that the next Farm Bill helps transform U.S. agriculture to meet 21st century challenges with a framework that robustly incentivizes innovation—and actively partners with the producers, Ag tech, equipment and input companies, consumer product companies and consumers, and other stakeholders who are leading the Ag sector to a new, innovative, and economically sustainable future.

Include The Healthy Soils Healthy Climate Act

The 2018 Farm Bill introduced a new program, On-Farm Conservation Innovation Trials, under the USDA’s Natural Resources Conservation Service (NRCS). The program included the Soil Health Demonstration Trial (SHDT) program with a specific focus on practices and innovations to improve soil health. Hundreds of farmers and ranchers in nearly all 50 states are now participating in SHDT trials, and many more would like to. As called for in the Healthy Soils Healthy Climate Act introduced in Congress6, the 2023 Farm Bill should greatly expand the SHDT program and make it permanent.

Create And Fund An Advanced Research And Innovation Hub Within the U.S. Department of Agriculture

With the emergence of Ag Tech as a potentially transformational and fast-growing investment sector in recent years—akin to the clean-energy sector in 2009—Congress should create and fund an entity comparable to ARPA-E within USDA to support and accelerate private and academic R&D in future-focused Ag areas such as soil health data collection and measurement; farm robotics; precision Ag management software; and bio-based fertilizers, herbicides, and pesticides. The new entity should create partnerships with other relevant agencies such as EPA, DOE, DOD and National Labs, as well as land grant universities across the U.S. These federally funded research hubs will bring high-quality jobs, both directly and indirectly through p

Include the Cover Act

Crop insurance has been a cornerstone of U.S. federal agriculture policy and an essential economic safety net for America’s farmers for nearly a century. Under policies administered by the USDA’s Risk Management Agency (RMA), some 90% of all farmed acres in the U.S. are covered by federal crop insurance. However, some crop insurance policies have become a barrier to best practices and have reduced producers’ ability to innovate for crop resilience in their specific regions and on their individual farms. And the current system costs U.S. taxpayers billions of dollars every year.