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The US Clean Energy Incentive Landscape

Federal support of clean energy and related technologies — from solar and wind to batteries and more efficient manufacturing — has helped to create jobs, expand manufacturing, and grow the US economy for decades. For consumers, businesses and the government, as well as non-profit organizations such as RMI that assist them, the public investment has cut costs and waste, reduced harmful pollution, and stimulated investment. And while these benefits have supported people, businesses, and communities on both sides of the political aisle, they now face uncertainty in Washington.

The following resources document federal policy and benefits supporting clean energy investment and related technology innovation, including the Inflation Reduction Act (IRA), the Bipartisan Infrastructure Law (BIL), the CHIPS and Science Act, and related bills. This page will be updated as needed.

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The Opportunity: Recent Federal Investment

As passed in 2022, the IRA marked the largest-ever investment in US clean energy, technology, and related manufacturing. The package aims to modernize transportation, building, heavy industry, energy, and other strategic sectors. It also invests in developing domestic supply chains. Rules are set to ensure that benefits flow widely to Americans across the country. Low-income groups, and those that have experienced disproportionate harmful pollution, are a top priority.

While these benefits have begun to be realized as of mid 2025, progress is in limbo while Congress and the Administration determine which grants and tax credits remain. Here, we’ve highlighted opportunities in the IRA to show the scale of potential benefits if the IRA continues.

Breaking Down the Inflation Reduction Act. Program by Program. Incentive by Incentive.

This spreadsheet breaks down the funding opportunities in the IRA to allow a variety of users to easily find out which programs and tax incentives can benefit them.
The Economic Tides Just Turned for States

RMI uncovers the surprising, transformative benefits of the Inflation Reduction Act and clean energy for US states.
How the Inflation Reduction Act Will Spur a Revolution in EV Battery Supply Chains

The IRA’s provisions for critical minerals, the “clean vehicle credit” could catalyze a new era of US leadership in sustainable supply chains.

The Inflation Reduction Act Could Transform the US Buildings Sector

The Inflation Reduction Act could drive millions of retrofits, upgrades, and clean technology installations in US homes, schools, and workplaces.
State Clean Energy Economy Opportunity

Envision how 22 states can produce and use more clean power
The Results: Successes & Benefits

States, cities, businesses, and other stakeholders have accessed public clean energy funding, often contributing additional local private and public funds, and are building new projects across the country. A growing roster of these efforts have begun to deliver significant benefits to communities nationwide.

To document this progress, below we have curated case studies and examples of successful IRA implementations. These benefits could be jeopardized if federal incentives or policies are cancelled or significantly rolled back.

How One School Became a Power Plant for Its Community

A Baltimore community will see discounted electricity bills thanks to new solar panels at a local school and Inflation Reduction Act incentives.

Fleet Electric Vehicle Total Cost of Ownership with and without Federal Tax Credits

RMI analysis demonstrates that electric vehicles are more economical for fleets across light- and medium-duty applications than equivalent fossil fuel vehicles, but total cost of ownership for EV fleet vehicles increases if federal tax credits are unavailable.
Clean Energy Investments for Rural America Are Booming

The IRA-backed New ERA program advances a more reliable, affordable, and clean electricity system for rural America.

Trillion-dollar Win: Clean Energy Investment Benefits Growth and Jobs in All States

As federal clean energy incentives are targeted, red states face bigger losses.

Narrowing the Solar Equity Gap through Solarize

Cities are helping low- and moderate-income households install solar with Solarize campaigns.
Locally Powered, Federally Funded

How your neighborhood hospitals, universities, and nonprofits are accelerating the clean energy transition with federal dollars.
The Key: Resources & Tools

The following resources and tools can help US states and cities, along with companies, economic development organizations, and policymakers discover incentives, model policies, and identify the best places to build or attract various kinds of clean energy projects, often with the help of federal policies.

Decarbonizing Industry Resource Tool (DIRT)

Get the DIRT on industrial decarbonization incentives. This tool can help project developers, industrial companies, and investors discover the state and federal financial incentives that may be applicable to their heavy industry and transport projects.

AFFORD

Find, compare, and prioritize funding options with the America’s Federal Funding Opportunities and Resources for Decarbonization tool
Clean Growth Tool

Evaluate feasible clean energy and cleantech industries for your metro area
Energy Policy Simulator

Estimate the environmental, economic, and health impacts of hundreds of climate and energy policies
America Is All In Federal Funding Hub

Keep up to date with federal funding opportunities and deadlines
eLab Accelerator: Financing the Shift to Clean Energy

Building ambitious clean energy project applications that can unlock new options to lower costs and support reliability with the help of our experts.
How “Power Couples” Can Help the United States Win the Global AI Race

RMI analysis shows that building data centers alongside wind, solar, and batteries near existing grid connection sites can fast-track electricity needed for AI — without forcing families and businesses to foot the bill.

Implementation: Effective State Action & Policies

Smart implementation of any public support will continue to be critical to maximize benefits to the economy, jobs, health, and the climate. States as well as cities, businesses, and nonprofits are emerging as leaders in support of modernizing America’s industrial and energy sectors.

Below we've compiled information and guidance that states can access to implement clean energy and deliver varied benefits to their constituents. This will be updated as terms evolve.

State Resource Hub

The US transition to clean energy continues, states are taking action to take advantage of available incentives, implement innovative policies and address climate challenges, which will improve their state economies.
State Online Clean Energy Incentive Toolkit

States can play a key role in advocating for these federal incentives to help constituents in your state save money. This toolkit creates a guide for states to create an online clean energy incentive hub that provides clear information on incentives and programs to enable energy and cost savings statewide.
Bring in the Billions

This article includes a previous version of RMI’s IRA funding analysis. For the most up to date methods, data, and visuals please visit our IRA Funding Potential webpage. US states are currently in a race…
Building Bigger and Cleaner Industries in US States

If sustained, federal clean energy incentives can continue expanding the US industrial sector and bring nearly $235 billion of federal investment to US states.
The Energy Infrastructure Reinvestment (EIR) Program for States

The federal Energy Infrastructure Reinvestment (EIR) program can accelerate the deployment of clean energy and clean industries, revitalize communities suffering from changes in the energy economy, and reduce pollution across the United States.

The State Energy Financing Institution (SEFI) Program for States

In addition to bringing a manufacturing boom to US energy infrastructure projects via tax credits and grant programs, the Inflation Reduction Act (IRA) created a powerful new tool for states to drive economic investment: the State Energy Financing Institution (SEFI) program.
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