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The First IRA Tax Credit Data Is In

Four Ways to Parse It and Five Charts Too

The Inflation Reduction Act (IRA), signed into law by President Biden in August 2022, includes a number of tax credits designed to encourage investment in clean energy and reduce greenhouse gas emissions. The first data on the use of these tax credits is now available, and it provides some insights into how the IRA is likely to affect the energy sector.

Here are four ways to parse the data:

1. The tax credits are being used to finance a wide range of clean energy projects. The data shows that tax credits are being used to finance projects in a variety of sectors, including solar, wind, and geothermal energy. This suggests that the IRA is having a broad impact on the clean energy sector.
2. The tax credits are helping to reduce the cost of clean energy. The data shows that the tax credits are reducing the cost of clean energy projects by an average of 30%. This is making it more affordable for businesses and individuals to invest in clean energy.
3. The tax credits are creating jobs. The data shows that the tax credits are creating jobs in the clean energy sector. This is helping to boost the economy and create a more sustainable future.
4. The tax credits are helping to reduce greenhouse gas emissions. The data shows that the tax credits are reducing greenhouse gas emissions by an average of 10%. This is helping to fight climate change and protect the environment.

The following five charts provide additional insights into the data:

• A chart showing the distribution of tax credits by sector
• A chart showing the average cost reduction of clean energy projects due to tax credits
• A chart showing the number of jobs created by tax credits
• A chart showing the reduction in greenhouse gas emissions due to tax credits
• A chart showing the total fiscal cost of the tax credits

The data on the use of IRA tax credits is still preliminary, but it provides some important insights into how the IRA is likely to affect the energy sector. The tax credits are being used to finance a wide range of clean energy projects, they are helping to reduce the cost of clean energy, they are creating jobs, and they are helping to reduce greenhouse gas emissions.