New CICE Report/Survey Finds IRA Has Significant Economic Impacts on Clean Energy Businesses and Communities
The Inflation Reduction Act has proven to be a positive economic generator, creating 600K jobs and adding over $200B to the economy
(October 15, 2024) — Businesses in the clean energy industry report that the federal Inflation Reduction Act (IRA), the CHIPS Act, and the Bipartisan Infrastructure Law (BIL) have helped them grow, create jobs, and expand their economic footprint throughout the country.
The survey engaged nearly 930 clean energy and clean vehicle businesses across the U.S. Subsequently, interviews were conducted with stakeholders in six states across the construction, manufacturing, and professional services industries. The findings emphasize the positive impacts of the IRA, which resulted in new technology expansion and job creation, and spurred growth and innovation across various sectors, including energy efficiency, renewable electricity generation, energy storage, and electric/alternative transportation. Many major provisions of the IRA have enjoyed a long history of bipartisan support.
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:
Key Findings:
This survey showed strong industry support for the IRA. Eighty-five percent of respondents said the IRA was “very important” or “somewhat important” to their companies' growth.
Nearly two-thirds of respondents said they created jobs as a direct result of the IRA (64%)
Federal tax credits through the IRA provided certainty and reduced market risk, incentivizing the private sector to invest in clean energy technologies, particularly emerging technologies. These clearer guidelines boosted investor confidence and allowed growth.
The IRA adds financial stability to a nascent and growing set of technologies to help develop a suite of next-generation clean, domestic energy production options while onshoring manufacturing and creating over 467,000 jobs during the construction phase and at least 154,000 permanent American jobs.
Most respondents were considered small businesses, with roughly 100 employees or less and a majority of respondents have been in business for at least eight years (76%).
These initiatives have provided much-needed investments in rural areas. The high rate of new project installations, especially in rural areas, has created a transition pathway for workers from struggling industries to move into skilled clean energy jobs.
"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,” said Ryan Evans, executive director of CICE.
This report serves as a reminder of the broader economic impact of clean energy investments and how policy can create certainty and lower market risk for investors across all sectors of the clean energy industry. Repealing or undermining either of these policies would slow investment and hinder the development of new technologies, jeopardizing job growth and economic progress, particularly in regions that need it most. Further, hindering the development of new technologies would weaken the U.S.’s effort to diversify our energy sources and achieve energy independence.
CICE recognizes the historically bipartisan support for most of the major provisions and applauds the efforts of many lawmakers who recognize and support the IRA's significant contributions to creating good-paying American manufacturing jobs while increasing our domestic clean energy production capacity.
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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 whether they were 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.
About Chambers for Innovation and Clean Energy: Chambers for Innovation and Clean Energy (CICE) is a national network and information hub for local chambers of commerce and economic development organizations. Created and led by chamber of commerce leaders, CICE helps fellow chambers and their member companies successfully navigate and prosper in the clean energy space. CICE provides access to clean energy information, best practices, energy experts, incentives, and business opportunities. Visit CICE at www.chambersforinnovation.com.
About E2: 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.
About Clean Energy Leadership Institute: 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.
Partner Quotes:
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.”
Philip Jordan, vice president at BW Research, said:
“Businesses told us loud and clear that the IRA is a game-changer for their companies, their employees and for our economy.
“Taking it away means taking away revenues, jobs, and opportunities - not just for their companies and their employees, but for the local communities where they’re building these factories.”