Benefits of the Inflation Reduction Act by State

This document outlines the methodology used by RMI to estimate the state-level benefits of the Inflation Reduction Act (IRA), focusing on funding flows from tax credits, rebates, grants, and loans, as well as public health and jobs co-benefits.

• RMI calculates potential funding from IRA tax credits by determining a 'Climate-Aligned Target' for 2030, often by downscaling national values from the Net Zero America study's 'E+RE+' scenario to the state level. This process involves subtracting 2022 baseline levels from the 2030 target and multiplying the difference by the applicable credit value, while accounting for constraints like domestic manufacturing requirements and bonuses for prevailing wages, apprenticeships, and energy communities.
• For IRA provisions where funding is provided via rebates, grants, or loans rather than tax credits, RMI typically downscales the national Congressional Budget Office (CBO) score to the state level using specific metrics. Examples of these metrics include a state's methane emissions relative to the US for the Methane Emissions Reduction Program, or industrial fuel consumption for industry-related provisions.
• The methodology for estimating public health and jobs benefits relies on downscaling national co-benefit estimates from Energy Innovation's 'Moderate Scenario' based on a state's population relative to the total population of the United States.
• Specific calculations for different sectors include using NREL data to estimate the number of chargers needed for electric vehicles (3.4 DCFC and 40 Level 2 ports per 1,000 EVs) and using Census Bureau data to project the number of new homes by 2030, assuming 10% will be DOE or EPA energy efficiency rated.

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} }