IRA is Huge Boon for States in Energy, Jobs, Health

February 13, 2023

RMI is formerly Rocky Mountain Institute.


RMI analyzed the level of money that could be invested in states thanks to the Inflation Reduction Act, if consumers and businesses adopt clean technologies at the pace and scale needed to meet national climate targets (which we call a “Climate Ambitious Scenario”). We found that states could secure between $1,500 to $12,000 per capita per state and $1 billion to $130 billion per state cumulatively between now and 2030.

States with strong renewable energy potential and industrial activity have the most to gain per capita by taking full advantage of the numerous provisions in the IRA.

Most of these states, such as Wyoming, Montana, and Louisiana, are located in the Great Plains and the South, and have significant rural and industrial communities that will uniquely benefit if states take urgent, ambitious action by deploying clean energy technology and infrastructure.

States can take advantage of several key Inflation Reduction Act provisions and financial incentives. Just a few examples of these provisions include:

  • Clean energy tax credits for new renewable energy projects
  • Rebate programs to support low- and moderate-income households to electrify their homes
  • Grants for climate reduction projects — any project, activity, or technology that aims to reduce carbon emissions
  • And many more

RMI also analyzed which funding mechanisms from the IRA could yield the most investment in individual states — tailoring the analysis to each state’s unique economy and source of emissions.

In Wyoming, for example, tax credits — like those for new clean energy projects, efficiency in commercial buildings, electric vehicles, and green hydrogen — could account for as much as 89 percent of the federal investment (as opposed to grants, loans, and rebates) coming from the IRA.

But for state governments and their residents, there are even more benefits to unlock beyond investment dollars. RMI’s analysis shows that each state could see between 2,000 and 100,000 new jobs (measured in job-years) and avoid between 4,000 and 300,000 negative health outcomes (ranging from reduced activity days to avoided death) in 2030 under a scenario where states ambitiously use the provisions in the IRA.

Our Energy Policy Simulator for states — a free data tool we created with partners at Energy Innovation to simulate the impacts of more than fifty different climate and clean energy policies — consistently shows that ambitiously investing in the clean energy transition creates jobs and improves public health.


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