Benefits of the Inflation Reduction Act by State

The document describes a methodology for downscaling national Inflation Reduction Act (IRA) funding and co-benefits to the US state level. For tax credits, RMI uses 'Climate-Aligned Targets' based on the Net Zero America study and RMI State Scorecards to estimate potential investment in electric vehicles, renewable energy, heat pumps, and carbon sequestration. For non-tax credit funding (rebates, grants, loans), the analysis downscales Congressional Budget Office (CBO) estimates using state-specific metrics such as methane emissions, fuel consumption, or population. Public health and jobs benefits are downscaled from Energy Innovation's national modeling based on state population relative to the United States.

• Funding for IRA tax credits is calculated by determining a 'Climate-Aligned Target' for 2030 per state, often by downscaling national values from the Net Zero America study's "E+RE+" scenario, and multiplying the required capacity or unit increase by the credit's dollar value.
• For provisions not funded via tax credits, RMI typically downscales the Congressional Budget Office (CBO) national budget score to the state level using parameters related to the specific provision, or uses federal formula funding allocations where available.
• Electric vehicle (EV) funding estimates are based on the difference between 2022 EV levels (from the state Energy Policy Simulator) and a 2030 target aimed at slashing emissions in half relative to 2005 levels, with a 0.30 multiplier applied to the new EV tax credit (Section 13401) to reflect expected qualification rates.
• Estimates for clean electricity production (Section 13701) and investment (Section 13702) tax credits use weighted averages of credit rates based on the likelihood of state utilities meeting criteria such as prevailing wage requirements.
• Public health and employment benefits are derived by downscaling Energy Innovation's national 'Moderate Scenario' modeling to the state level based on population.

APA

RMI (n.d.). Benefits of the Inflation Reduction Act by State. https://rmi.org/app/uploads/2023/02/methodology-ira.pdf

Chicago

RMI. Benefits of the Inflation Reduction Act by State. n.d. https://rmi.org/app/uploads/2023/02/methodology-ira.pdf.

Wikipedia

{{cite report |author=RMI |title=Benefits of the Inflation Reduction Act by State |url=https://rmi.org/app/uploads/2023/02/methodology-ira.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmindbenefits, author = {{RMI}}, title = {{Benefits of the Inflation Reduction Act by State}}, institution = {RMI}, url = {https://rmi.org/app/uploads/2023/02/methodology-ira.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }