A new study indicates that the Inflation Reduction Act (IRA) will benefit the United States economy, increasing it by $1.9 trillion over the next ten years. The positive impacts span the energy sector, affecting renewable resources, oil, gas, hydrogen, nuclear energy, battery storage systems, as well as power, transportation, and manufacturing sectors. One of the most notable outcomes in recent years is the substantial increase in domestic manufacturing of clean energy systems.
Commissioned by the American Clean Power Association (ACP) and conducted by ICF, the report analysed the economy-wide impacts of the IRA's energy tax credits. The findings suggest that the law will incentivise significant investments, create millions of jobs, and boost economic growth, leaving a lasting impact on the U.S. economy.
The study explores the IRA’s effects across various sectors, including power, transportation, buildings, sustainable aviation fuels, hydrogen, and manufacturing. It demonstrates the law’s potential to drive economic growth, promote clean energy technologies, and reduce greenhouse gas emissions.
Key findings include:
- The IRA will generate $3.8 trillion in net spending across the U.S. economy, offering a fourfold return on taxpayer investment when considering both economic and emissions benefits.
- The IRA will boost the U.S. economy by $1.9 trillion, contributing to a stronger and more resilient economy.
- The law is expected to create 13.7 million jobs over ten years.
Investments resulting from the IRA will add $846 billion to household income.
The ACP is supported in its findings by several organisations, including the U.S. Chamber of Commerce, the Edison Electric Institute, the National Electrical Manufacturers Association, the National Hydropower Association, and the Nuclear Energy Institute.
