Washington, D.C. – Clean energy companies say the federal Inflation Reduction Act (IRA) has dramatically boosted their businesses, and that repealing or rolling back the landmark climate and clean energy law would result in substantial losses, layoffs, and closures, according to a first-of-its kind survey of more than 900 businesses released today.
The survey comes as a new analysis on the IRA’s impact finds large-scale clean energy projects announced in the first two years of the law will support over 600,000 jobs, generate hundreds of billions of dollars in new wages, tax revenues, and economic growth, and continue producing tens of billions more in economic benefits each year after they open.
Conducted by BW Research Partnership for the national nonpartisan business group E2 and partners Chambers for Innovation and Clean Energy (CICE) and the Clean Energy Leadership Institute (CELI), the nationwide poll of clean energy business owners found:
- 85 percent of respondents said the IRA was “very important” or “somewhat important” to the growth of their companies.
- The majority of respondents (53 percent) said they would lose business or revenue as a direct result of an IRA repeal.
- About 21 percent of respondents said they would have to lay off workers if the IRA is repealed, with 13 percent of firms saying they would have to lay off at least 25 workers.
- About 13 percent of firms said they would have to freeze wages or rescind offers to prospective employees
- About 11 percent of firms said they would close their business entirely, while 9 percent said they would have to relocate to another country.
- Rural America, which has seen the largest influx of clean energy and clean vehicle projects spurred by the IRA, would suffer the most from a repeal of the law.
The survey was conducted in August concurrent with the second anniversary of the of the landmark climate and clean energy law and released today in conjunction with a new economic analysis by E2 and BW Research modeling just how broad and far-reaching the economic benefits from the policy extend.
According to that separate report, “Clean Economy Works: An Economic Impact Analysis of Major Clean Energy Projects Announced In Year Two of the Inflation Reduction Act”, the nearly 340 large-scale projects announced by companies in the first two years after the IRA are expected to:
- Create or support 467,000 jobs during the construction phase and 154,000 jobs after the projects are up and running;
- Add $238 billion to U.S. GDP during construction and $20 billion annually to the GDP over their operational lifetime;
- Generate $50 billion in federal, state, and local tax revenues during the construction phase and another $4 billion annually after they’re up and running; and
- Pay $169 billion in wages during construction and another $12 billion annually during their operational lifetime.
The analysis also includes detailed information on jobs, tax revenues, wages and overall economic impacts for projects announced in rural counties and the 82 projects announced in the three states benefitting most from the projects announced since the IRA – Michigan, Georgia, and North Carolina.
Bob Keefe, executive director of E2 and author of the recently released book “Clean Economy NOW” about the IRA, said:
“The impacts of this landmark policy are now crystal clear – as are the consequences if it’s repealed or rolled back.
“We now know the IRA is driving the creation of hundreds of thousands of jobs and generating billions in new wages and tax revenues for workers and communities in parts of our country that need it the most. And we now also know that if it goes away, businesses will lose money, workers will lose jobs and our economy will lose steam.”
Esther Morales, executive director of CELI said:
“The IRA and other policies have created unprecedented opportunities for young people and people of color to access the benefits of the clean energy economy.
“As businesses said in our survey, all of that is at risk if we go backward on the progress we’re just now beginning to make.”
Ryan Evans, executive director of CICE said:
“The IRA is proving to be a tremendous accelerator for the clean energy economy, delivering a significant return on investment for the U.S. through the jobs and capital investments it has helped create. Equally important is the transformational impact the IRA is having in rural communities across the country, where new manufacturing jobs and tax revenues are being generated—bringing much-needed economic opportunities to areas where they have been difficult to realize.”
In addition to the survey of stakeholders at 930 companies, BW Research conducted interviews with executives across the clean energy, electric vehicle and energy efficiency industries. Those interviews revealed that the IRA has had a major role in reducing the risk of developing clean energy projects; driving innovation and fostering market competition. Repealing the law would dramatically weaken investor confidence, increase project timelines and set back emerging technologies, they said.
“We’ve seen at least a three-fold increase in project level development activity since the passage of the IRA.”
– Erik L., CEO of a solar and energy storage firm in the Southeast.
“Not only does [the IRA] provide a great deal of incentives for making this transition happen to clean energy, but in addition, it’s a statement about our commitment to the future.”
– Ron K., principal at a clean energy consulting firm in the Northeast.
“The IRA was a total game changer for us, to have that [Investment Tax Credit] extension and to have it at 30%. Not just for the actual benefit it provides, but also because it gives some assurance in the market that we’ve never had,”
– Whitney P., partner at a solar and battery installation firm in the Rocky Mountain region.
About “Impact Study of Arrested IRA Investment”
The national survey of nearly 930 business stakeholders was conducted in August 2024, concurrent with the second anniversary of the IRA. It was complemented by interviews with key executives involved in clean energy development, construction, and manufacturing. The survey sought to capture business sentiment about the direct impacts of the IRA, Bipartisan Infrastructure Act (BIL), the CHIPS and Science Act of 2022, as well as state energy policies, on clean energy businesses’ hiring practices, revenue, and decision-making. A larger focus was placed on the impacts of the IRA as opposed to other federal policies due to the IRA’s broad impact on the clean energy and clean vehicles industries.
For more information on the survey, see Appendix A in the report.
About “Clean Economy Works” Impact Analysis
This analysis provides a thorough economic prediction of the impacts of the 338 announcements by filling in the gaps of publicly announced information. Modeled impacts differ from initial estimates offered by companies announcing new projects, tracked by E2. Ninety of the 338 announcements provided no capital investment estimate and 92 provided no job creation estimate. Additionally, those estimates were inconsistently defined, lacking clarity on if they are direct jobs only or direct, indirect, and induced jobs, and if they were for construction or permanent positions.
For more information, see Appendix C in the report.
For the latest full list of clean energy job announcements tracked by E2, visit https://e2.org/announcements.
Other Resources
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on Twitter at @e2org.
The Clean Energy Leadership Institute (CELI) is building a multiracial, diverse, and inclusive community of change-makers working across sectors and disciplines to lead an equitable, decarbonized, and resilient energy ecosystem.
Chambers for Innovation and Clean Energy (CICE) is a nationwide network of chambers of commerce and economic development organizations working to accelerate the transition to a clean energy economy. We support and amplify the voices of chamber and economic leaders demonstrating the business case for clean energy investment and innovation. Visit chambersforinnovation.com to learn more.