Report: IRA to Generate 67k Jobs, $2bn Income in US
The Inflation Reduction Act, signed into law in the US in August 2022, has set policies to reduce carbon emissions, improve healthcare, and increase taxpayer compliance. According to a report by Environmental Entrepreneurs, the act has been beneficial for rural areas, leading to 52 manufacturing projects, creating 67,000 jobs and nearly $2 billion in worker income, and assisting over 900 rural electricity co-ops to supply cleaner, more efficient energy. The legislation is also expected to reduce gas prices by 13% and electricity prices by 9%, and aid farmers via a $20 billion investment over five years toward conservation programs.
Inflation Reduction Act: A Boon for the US Economy
The Inflation Reduction Act (IRA) was enacted in the United States in August 2022 to introduce new policies focusing on carbon emission reduction, improved healthcare, and taxpayer compliance. Additionally, this legislation allocates resources directly towards environmental justice priorities.
As the IRA marks one and a half years, it’s important to evaluate its impact on rural America. According to a report by the Environmental Entrepreneurs, a nonpartisan group of US business leaders, investors, and professionals, the IRA initiatives have resulted in 52 rural manufacturing projects, generating approximately 67,000 jobs and nearly $2 billion in worker income.
The IRA funds have additionally aided over 900 rural electricity co-ops in providing cleaner, more efficient, and affordable energy. It also made clean energy and energy efficiency projects more accessible for local businesses, community organizations, farms, and municipal buildings.
The Act is also projected to cut gas prices by 13% and electricity prices by 9%, as reported by Forbes. This initiative has paved the way for investors to channel capital into low-carbon solutions, such as wind and solar power and electric vehicles.
Agriculturally, a $20 billion IRA investment over five years in the US Department of Agriculture’s conservation programs aims to assist farmers in reducing input costs, enhancing crop resilience, and improving soil health.
According to the Rocky Mountain Institute, IRA programs could potentially unlock over $1 billion in investments in every state by 2030, given consumers and businesses adopt clean technologies at a pace consistent with national climate targets. A recent analysis predicts that Texas and Georgia could see investments of $131 billion and $16 billion, respectively.
Further analysis by RMI suggests that a $10 billion investment in wind and solar projects for co-ops could yield over $50 billion in economic development revenues. By 2030, a carbon-free grid could provide nearly $11 billion per year in direct benefits to rural communities.
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