Half of $114B Inflation Act Factory Investment Goes to Swing States

TL/DR –

Approximately $114 billion in clean-tech investments have been announced by manufacturers since the passing of the Inflation Reduction Act in 2022, with nearly half of the spending occurring in political swing states. The investments, which have been stimulated by President Biden’s climate law, include factories for creating electric vehicles, large batteries, and components for wind and solar farms. However, it remains unclear whether these new manufacturing ventures will influence the vote in the upcoming election.

Clean-Tech Investments Skyrocket Following Inflation Reduction Act

Since the passing of the Inflation Reduction Act in 2022, clean-tech manufacturers have announced a whopping $114 billion in investments, with political swing states reaping nearly half of these funds, as per a BloombergNEF report. This surge in clean technology investment signifies the impact President Joe Biden’s climate legislation has had on economic development and job creation, particularly in key election states.

The future of the law, however, hangs in the balance as no Republicans voted in its favor and former President Donald Trump has signaled a challenge. The question remains if the boost in manufacturing will sway voting patterns in the upcoming election.

About $53.6 billion of the clean-tech factory spending is earmarked for six swing states: Arizona, Georgia, Michigan, Nevada, North Carolina, and Pennsylvania. These investments encompass factories for electric vehicles, large batteries, and components for wind and solar farms, stimulating various local economies.

Each swing state is attracting investment for different reasons. Michigan’s large labor force and cost-effective power attract manufacturers, while Georgia boasts robust regulatory and fiscal support from local governments.

Find out more about how Red States stand to Reap the Biggest Rewards From Biden’s Climate Package.

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