How the IRA is boosting the economy — and why Congress must protect it

By Bella Kubach 

In late 2022, CCL volunteers went all out to help pass the Inflation Reduction Act — the most significant U.S. federal investment in solving climate change.

Since then, the climate provisions of the legislation have been a resounding success. According to nonprofit Climate Power, since its passage, the IRA has created over 334,000 new clean energy jobs, turbocharging everything from battery manufacturing, to electric vehicle assembly and solar installation, and building retrofits. Meanwhile, clean energy jobs exceed national wage averages by up to 19%. 

Although the IRA was passed by Democrats along partisan lines, red states and Republican districts have largely benefited from local economic development thanks to successful clean energy incentives.

The legislation, which offers major tax credits and rebates for energy efficient home upgrades and EV purchases, has also been popular with households. 

Indeed, CCLers have been shouting from the rooftops about how embracing electrification has saved them money and improved their air quality. Even better, the act — alongside the Bipartisan Infrastructure Law — was on track to cut climate pollution 40% from 2005 levels by 2030, increasing our chances of preserving a livable world for all.

Yet, Republican Party leadership in Congress has been clear about their intention to repeal at least parts of this legislation during their budget process this year. 

And further, after his inauguration, President Trump signed an executive order pausing the disbursement of funds from the Inflation Reduction Act. Although the President should not be able to stop this funding permanently without congressional action (hence a federal judge issuing a restraining order) it quickly resulted in jobs being frozen and projects being stalled. 

So with climate progress in jeopardy, CCL has moved into defense mode. Our volunteers are mobilizing nationwide to send a clear message to members of Congress that we love the economic and climate benefits of the IRA — and we want them to stay.

As we embark on our quest to move lawmakers to preserve it, we invited Lucero Marquez, Associate Director of Federal Climate Policy at the Center for American Progress to break down the IRA’s benefits during CCL’s January national meeting. Watch the discussion here or read on for a recap. 

Energy efficient home help

The IRA has allowed millions of Americans to get a helping hand as they upgrade their homes with cleaner and more efficient appliances and vehicles.

“The residential clean energy tax credit gives homeowners 30% back on what they pay for household clean energy systems like rooftop solar,” said Lucero. “Consumers can get 30% back for energy saving renovations like adding insulation that helps keep cool air out in the winter and inside the home during the summer. Or to purchase energy efficient appliances like heat pumps — this credit applies to renters, too.”

Handy rebates

The benefits of home electrification include lower energy bills and more bang for your buck thanks to improved efficiency, but upgrades can be costly — which is why rebates of up to $14,000 can make all the difference for many homeowners. 

Lucero described how, thanks to the IRA, the Department of Energy’s Home Energy Rebates ensure that low to medium income families can get as much as $14,000 per year in point of sale discounts for electrification projects.

Business incentives 

Did you know the IRA has multiple incentives for business owners? Clean energy tax credits, for instance, are awarded to businesses that invest in wind, solar, battery storage, and geothermal solutions, explained Lucero.

“The Rhodium group estimated that the credits will drive 146 to 308 GW of clean energy capacity to the U.S. grid by 2030 — the equivalent of 73 to 154 Hoover Dams!” she added.

Businesses have the opportunity to get additional credits for meeting labor standards such as paying employees a prevailing wage and hiring from apprenticeship programs.

Perks for clean projects  

“A great feature of the Inflation Reduction Act is that tax-exempt and governmental entities can now receive a payment equal to the full value of tax credits for building qualifying clean energy projects known as direct pay,” revealed Lucero. She used the city of Denver, Colorado as an example, where direct pay has allowed them to complete three new solar gardens and save over one million dollars. 

Good for people 

The IRA invests billions of dollars in a wide range of programs dedicated to reducing particle pollution, which could help to avert 3,900 premature deaths and 100,000 asthma attacks by 2030. Funding for research and development and drought mitigation, among many other environmental and health-related goals, are all essential as we face the growing challenge of global warming.

As Lucero concluded, the IRA’s nationwide approach to the climate crisis ensures we all see tangible benefits, while ensuring a future that’s good for the economy, people and the planet.

Spread the word

This month, CCL volunteers are making the case for the IRA’s benefits across social media. Want to add your voice to amplify the message? You can share one of CCL’s recent posts or follow the guidance in our February Action Sheet to create a post of your own. 

Bonus points if you tag a Republican member of Congress and focus your post on the economic benefits that lawmaker’s district or state has enjoyed thanks to the IRA. 

And these social media posts are just the beginning — we’ll continue to make this argument directly to Republican lawmakers in our upcoming lobby meetings and messages as their budget reconciliation process proceeds throughout the year.

Bella Kubach is a Spring 2025 intern for CCL’s Communications department.

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