Recent Research Summaries On IRA Tax Credits

Below are summaries of recent research studies on the IRA tax credits. We are sharing these with our congressional representative.

American Clean Power Association (ACP) Report on Future Benefits of the Inflation Reduction Act Tax Credits. Press Release: Washington DC, December 19, 2024

From the ACP Website: “The American Clean Power Association (ACP) is the leading voice of today’s multi-tech clean energy industry, representing energy storage, wind, utility-scale solar, clean hydrogen, and transmission companies. ACP is committed to meeting America’s energy and national security goals and building our economy with fast-growing, low-cost, and reliable domestic power.”

A new independent study reveals that the Inflation Reduction Act (IRA) will deliver substantial economic benefits for the United States, notably growing the economy by $1.9 trillion over the next ten years. The benefits extend across the energy sector, positively impacting renewable resources, oil, gas, hydrogen, nuclear energy, and battery storage systems as well as the power sector, transportation, manufacturing, and more. Among the most significant impacts in the last two years is the substantial increase in domestic manufacturing of clean energy systems.

ACP is joined in support of the report findings by five organizations, 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. A copy of the endorsement letter may be found here.

The report’s findings highlight the significant economic benefits that will result from the law’s implementation. Key findings include:

• Massive Economic Impact: The IRA will spur $3.8 trillion in net spending across the U.S. economy, creating a 4x return on taxpayer investment when considering both economic and emissions benefits.
• Economic Growth: The IRA will grow the U.S. economy by $1.9 trillion, contributing to a stronger and more resilient economy.
• Job Growth: The law is expected to create 13.7 million jobs over ten years, providing a significant boost to the U.S. labor market.
• Increased Household Income: Investments resulting from the IRA will add $846 billion to household income, improving the financial well-being of millions of Americans.

ConservAmerica’s Economic Analysis of Clean Energy Tax Credits https://conservamerica.org Press Release: February 20, 2025

Report Title: A Wide Array of Resources is Needed to Meet Growing U.S. Energy Demand

From the Executive Summary: “Annual peak electricity demand in the U.S. is expected to increase 30% over the next decade, and a wide variety of resources is needed to support that and the associated economic growth; renewables and storage are ready now.”

Key Findings:

1.Elimination of clean energy credits would raise customer rates, reduce economic growth and eliminate jobs. Average annual residential bills would increase. GDP and jobs would decrease because of higher electricity rates and less construction, mostly in rural areas, leading to a total market impact of $820 billion.

2.Eliminating or altering clean energy credits would dramatically reduce investment in low cost solar and wind generation, hurting economic growth. Solar and wind investment through 2035 would be 50% lower, along with some decreasein storage. Limited additional gas-fired generation is available until early 2030s, creating potential for a shortfall of supply to meet power need.

3. Economic growth would be limited. Realizing economic growth will depend on how quickly new electric generation capacity can be added. Electricity demand is surging to support an economic boom: data centers for AI; manufacturing reshoring; electrification of industry and other uses; growing oil and gas extraction. Serving this growth requires a lot more supply. Peak demand growth rates exceed 5x that of the past decade; by 2030 the U.S. will need to serve 20% higher annual peak or 150 GW; by 2035 the peak will grow by 30%.

4. All supply sources are need to meet growing demand effectively. A wide array of resources is needed to provide enough power reliably and cost effectively; nearly 2000 GW of wind, solar, and storage projects in transmission interconnection queues; much less gas fired generation is under development due to years of slow demand and limited turbine supply.

5. Solar, wind and storage projects are already in development and can meet demand now -other resources are available in later years.