IRA Funding Potential: By State and Sector
US states are currently in a race to the top to grow their economies. States across the political spectrum recognize that many of the fastest-growing sectors are in the clean energy economy. This page shows past and potential federal investments in each state and sector under the current (2024) Inflation Reduction Action (IRA) provisions, and areas with high prospective clean technology build-out.
Last Updated: December 4, 2024
Federal Funding Already Received
Individuals, businesses, governments, organizations, and communities have already taken advantage of available IRA tax credits, grants, and loans.
Federal Funding Potential by Sector
All states stand to benefit from IRA funding, especially tax credits, which can be claimed by eligible individuals and entities.
Industrial Build-out Potential
Many areas have high feasibility to build out capacity in industries that are eligible for tax credits.
Federal Funding Potential by Tax Credit
Most states have facilities and projects that are eligible for existing tax credits.
Methods:
Past federal funding data is collected from Clean Investment Monitor and the Internal Revenue Service. According to Clean Investment Monitor “All Federal Funding”, as shown in the first figure, reflects disbursed funding from IRA and IIJA. Past tax credit uptake estimates assume that 100% of eligible credits were taken in that time period.
Government spending projections from the Congressional Budget Office are used to estimate baseline funding values. This analysis uses the initial estimates from 2022 and updated estimates from 2023. State-level data was used to downscale national estimates for each provision. Additional funding estimates are calculated using internal analysis and external modeling to determine how much technology is needed for clean energy target alignment. Methods for the IRA funding analysis can be found here.
The Clean Growth Tool estimates local feasibility for clean technology, which was matched to technology covered by tax credits. In 2024, RMI and Brookings Institute released the Clean Growth Tool to help regions identify their best potential for manufacturing and industry expansions specific to their resources.
We will update these figures as new information becomes available.
Authors and Contributors:
To connect with the authors directly about their research, please reach out to them via email. For data inquiries please email usanalysis@rmi.org. For media inquiries or speaking opportunities, please email media@rmi.org.
