Two years after the Inflation Reduction Act (IRA) was signed into law, its transformative impact on both the climate and the American economy has become increasingly clear. The IRA has already made significant strides in creating jobs, driving clean energy investments, and guiding the United States toward a more sustainable future. Here are five stats you need to know about the Inflation Reduction Act's economic and environmental benefits over the past two years: 

• 330,000: Number of new jobs in the clean energy sector. One of the most impressive outcomes of the IRA has been its impact on job creation. In just two years, the legislation has created more than 330,000 new jobs in the clean energy sector alone. These are good-paying positions in clean energy, manufacturing, and related industries. 

  
  

• 75: Percent of funds have gone to low income communities. Notably, 75% of clean technology investments have flowed to counties below the national median in income. This distribution of economic benefits to areas that have historically been left behind is a crucial aspect of the IRA's successes, supporting the transition to a clean energy economy to be inclusive, equitable, and politically durable. 

  
  

• 209: Project applications totaling $281 billion. The Department of Energy's Loan Programs Office (LPO) has seen unprecedented interest in clean energy projects since the IRA's passage. In just two years, the LPO has received applications for 209 projects totaling $281 billion in requested support. This surge in project applications demonstrates the IRA's effectiveness in mobilizing capital for clean energy initiatives and accelerating the transition to a low-carbon economy.

  
  

• 24: Number of new or enhanced tax credits. To further encourage clean energy adoption and sustainable practices, the IRA introduced a series of tax credits. The Biden Administration's Treasury Department has been hard at work filling in the details and issuing guidance on how taxpayers can apply for and use these new tax incentives. To date, guidance for 21 out of these 24 new tax credits have been issued. This rapid implementation has provided clarity and certainty for businesses and individuals looking to invest in clean energy technologies, energy-efficient upgrades, and other sustainable practices. 

  
  

• 9,000: Members of the inaugural class of the American Climate Corps. Recognizing the need for a skilled workforce to drive the clean energy transition, the IRA has also supported the creation of the American Climate Corps. Earlier this summer, the innovative program enrolled its first cohort of 9,000 members. These young professionals will receive training and experience in climate related fields, preparing them for careers in the growing clean energy sector and ensuring that America has the talent pool necessary to meet its climate goals. 

The Economic and Environmental Impact of the Inflation Reduction Act

The IRA's impact extends beyond these specific metrics. When paired with the Bipartisan Infrastructure Law of 2021, the U.S. The Department of Energy estimates that the clean energy provisions of the IRA could reduce emissions by approximately 1,000 million metric tons (MMT CO2e) in 2030. This is huge: these expected emissions reductions are roughly equivalent to combined annual emissions released from every home in the United States. 

The IRA appears to be effective in meaningfully reducing America's reliance on fossil fuels. It is projected to significantly reduce the nation's greenhouse gas emissions, putting the country on track to meet its ambitious climate goals. This shift not only benefits the environment but also enhances national security and promotes economic stability.

Looking Ahead

The IRA has set in motion a transformative process that will continue to yield economic and environmental benefits for years to come. The creation of hundreds of thousands of new jobs, the influx of clean energy investments into lower income communities, and jumpstarting new careers in climate are just the beginning. The IRA has demonstrated that addressing climate change and stimulating economic growth are not mutually exclusive goals. Instead they can be powerful drivers of innovation, job creation, and sustainable development. 

The success of the IRA over the past two years provides a strong foundation for continued progress. It has set the stage for a cleaner, more prosperous America, proving that investments in our planet and our people can yield remarkable returns. The Inflation Reduction Act is likely to play an important role in shaping a sustainable and economically vibrant future.

Discover how to maximize the Inflation Reduction Act's tax credits for climate innovation.