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A latest report analysing the performance of the Inflation Reduction Act (IRA), in the US in the first-year claimed that the move could lead to the creation more than 400,000 new jobs and hundreds of billions of dollars of investments. The report was released by E2 a business group. It shared the update on the first year of the legislation. The law was slated to pave the way for large-scale clean energy projects.

These projects are estimated to create more than 400,000 new jobs and hundreds of billions of dollars, as per report. This project shall also create new wages, tax revenues, and economic growth, according to an economic analysis by BW a research partnership and  E2.

Clean Economy Works: The report analyzes the economic impact of major clean energy projects announced in year one of the IRA. This impact is estimated to bring economic benefits to the 210 clean energy and electric vehicle factories. This evaluation is based on the other projects announced across 38 states which were tracked by E2 from August 2022 to August 2023. It found that if all the projects are completed, they would:

1. Create or support 303,500 jobs during the construction phase and 99,600 jobs after the projects are up and running; Add $156 billion to the US GDP during construction and $13 billion annually to the GDP over their operational lifetime;
2. Generate $32.5 billion in federal, state, and local tax revenues during the construction phase and another $2.9 billion annually after they’re up and running;
3. Add $111 billion in wages during construction and another $8.4 billion annually during operation.

E2 Executive Director Bob Keefe said, “This is another indication that we’re witnessing one of the biggest and most far-reaching economic revolutions in generations, thanks to the IRA. What this study shows is that this boom extends beyond clean energy and clean vehicles and to everything from construction to restaurants to retailers to real estate.

“Even if you don’t care about climate change, even if you don’t like clean energy or electric vehicles, you ought to like the jobs, investments, sales and tax dollars coming to your state and your community because of this clean economy transformation.”

The study claims that while the construction industry and its supply chain will see the biggest benefits, other sectors ranging from healthcare and hospitality to retail trade and real estate also reportedly benefit greatly. Further, these projects are expected to generate $32.5 billion in tax revenues while projects that are under construction, would contribute to another $2.9 billion in tax revenues. This, the report states, is expected to generate annually once they’re open. Those tax revenues could help states and local governments pay for everything from new schools and sewer lines and help put more teachers in classrooms and more cops on the beat.

According to the research, the electric vehicle (EV) projects are leading the clean economy boom, by accounting for 185,7000 jobs. This would add $18.5 billion to the US GDP every year for five years during construction, the report adds. The report finds the battery storage sector to be second largest job creator with 48,800 jobs and $5 billion added to the GDP. The investment in EV segment is followed by solar energy which are estimated to create 35,000 jobs and $3.6 billion added to the GDP, the report says.

Once up and running, the EV projects alone are forecasted to support nearly 55,000 jobs and add $7 billion to the economy every year for the life of the projects, the report finds. The battery storage sector are estimated to be second with 13,600 jobs and $1.8 billion added, followed by solar energy with 12,100 jobs and $1.8 billion added every year, as per the report.