Advanced Energy United Reports

On Friday, August 12, the Inflation Reduction Act (H.R. 5376, IRA) passed the U.S. House of Representatives, the final stop in the legislative process before it arrives at President Biden’s desk for his signature. With over $396 billion in direct federal investments in advanced energy, transportation, and manufacturing, the IRA represents the largest climate and clean energy bill in US history – as well as one of the largest pieces of industrial policy in the modern era.

AEE’s Advanced Energy Manufacturing and Infrastructure (AEMI) Working Group dug into the details of the IRA and produced this detailed synopsis, cross-referencing it with other publicly available summaries to ensure accuracy. Many thanks to the team at Wilson Sonsini Goodrich & Rosati, which provided a careful review and additional analysis.

The Infrastructure Investment and Jobs Act of 2021 and Inflation Reduction Act of 2022 will deliver unprecedented investment in advanced energy deployment and production in the United States. Drawing on previous Advanced Energy United (previously Advanced Energy Economy) reports on federal stimulus proposals, this report estimates the economic impact of these two federal laws, both nationally and in 13 selected states. This analysis shows that the combined $444 billion invested through IIJA and IRA will stimulate an additional $1.2 trillion in private investment and result in:

• $2.8 trillion in total incremental economic activity (GDP)
• An increase in employment by 23 million jobs (in job-years)
• $505 billion in tax collections, and
• $60 billion in annual consumer savings

This would represent a six-fold return on investment of federal dollars in advanced energy growth.

Advanced Energy United (previously Advanced Energy Economy)’s vision is 100% clean electricity and electrified transportation in the U.S., and we support a broad range of technologies, products, and services that will get us to that goal.