ICYMI: U.S. CLEAN ENERGY BOOMING THANKS TO INFLATION REDUCTION ACT
U.S. Companies Are Making Big Investments in Clean Energy
In Case You Missed It — Since President Biden signed the Inflation Reduction Act, U.S. clean energy companies have been booming according to Canary Media. Thanks to the bill, companies like First Solar, Piedmont Lithium, Qcells North America, Toyota and Honda are investing billions that will drive years of economic growth and clean energy innovations.
The Inflation Reduction Act dedicates a historic $369 billion to support energy and climate initiatives, such as expanding domestic manufacturing capacity. This includes an estimated $30 billion in production tax credits aimed at accelerating U.S. manufacturing of batteries, solar panels, wind turbines and other clean energy technologies — along with tens of billions more in the form of investment tax credits and loans.
The act, according to Godfrey, will help lower the cost throughout the supply chain, from critical minerals to final product assembly. Before, “there wasn’t the pull side of the equation.” Now, alongside the tax breaks, he said, companies know there will be demand from domestic buyers all along the supply chain.
But, Godfrey added, there was pent-up demand in the renewable energy market, and the Inflation Reduction Act opened the floodgates. “It’s increasing the magnitude of dollars and investments going into advanced energy.”
Since the legislation passed in August, a number of companies have announced major initiatives to expand renewable energy manufacturing in the U.S. But how much of that is directly attributable to the Inflation Reduction Act?
About Invest in America
Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.