Building Bigger and Cleaner Industries in US States

Federal clean energy incentives have already spurred $75 billion in private investment and created over 100,000 manufacturing jobs since 2022. Under a 'High Potential Scenario', these incentives could bring nearly $235 billion in federal investment to US states by 2030, with the largest gains expected in battery manufacturing and hydrogen production.

• Federal clean energy incentives enacted in August 2022 have already catalyzed significant economic growth, resulting in more than 100,000 new manufacturing jobs since 2022 and approximately $75 billion in private sector investment between January 2023 and October 2024 across 10 sectors.
• Under a 'High Potential Scenario' where clean technologies are adopted rapidly, 10 industrial sectors could collectively receive $235 billion in federal investments by 2030. In this scenario, states would secure an average of $4.91 billion each, representing an average of 1.08% of a state's total GDP.
• Investment potential varies by state and region: Texas is projected to receive the highest total federal investment at $24.6 billion, while Louisiana is expected to receive the largest investment relative to its GDP. The South, Great Plains, and Great Lakes regions are identified as having the most to gain due to their industrial bases and renewable energy potential.
• The most significant investment potential is concentrated in four industrial activities: battery manufacturing, hydrogen production, aviation fuel production, and clean power manufacturing. Specific tax credits driving this include 45V for clean hydrogen, 45X for advanced manufacturing (such as thermal batteries), 45Q for carbon sequestration, and 45Z for clean fuel production.

APA

RMI (2025). Building Bigger and Cleaner Industries in US States. https://rmi.org/resources/building-bigger-and-cleaner-industries-in-us-states/

Chicago

RMI. Building Bigger and Cleaner Industries in US States. 2025. https://rmi.org/resources/building-bigger-and-cleaner-industries-in-us-states/.

Wikipedia

{{cite report |author=RMI |title=Building Bigger and Cleaner Industries in US States |date=13 February 2025 |url=https://rmi.org/resources/building-bigger-and-cleaner-industries-in-us-states/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025building, author = {{RMI}}, title = {{Building Bigger and Cleaner Industries in US States}}, institution = {RMI}, year = {2025}, month = feb, url = {https://rmi.org/resources/building-bigger-and-cleaner-industries-in-us-states/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }