Building Bigger and Cleaner Industries in US States

This report by RMI analyzes the impact and potential of US federal clean energy tax credits on the industrial sector. It finds that these incentives have already spurred significant private investment and job growth, with the potential to bring nearly $235 billion in federal investment to US states by 2030 under a high-growth scenario.

• Federal clean energy incentives enacted in August 2022 have catalyzed growth in hard-to-abate industries such as steel, iron, cement, and chemicals, resulting in over 100,000 new manufacturing jobs since 2022.
• Between January 2023 and October 2024, the private sector invested approximately $75 billion into projects across 10 sectors, driven by tax credits that reduce costs for mature and emerging technologies.
• Under a 'High Potential Scenario' where clean technologies are adopted rapidly, 10 industrial activities 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.
• Texas is projected to receive the highest total federal investment in industry ($24.6 billion) under the High Potential Scenario, while Louisiana is expected to receive the largest investment relative to its GDP.
• The most significant investment potential in the continental US is concentrated in four activities: clean power manufacturing, hydrogen production, battery manufacturing, and aviation 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} }