BlueGreen Alliance | FACT SHEET: Clean Energy Tax Credits in the Inflation Reduction Act

FACT SHEET: Clean Energy Tax Credits in the Inflation Reduction Act

The strengthened and newly established tax credits for clean energy in the Inflation Reduction Act will not only help drastically reduce emissions, but provide high-quality jobs in the clean economy.

August 24, 2022

The bill—for the first time ever—includes high-road labor standards that go hand-in-hand with clean energy deployment. This is significant when considering—on the whole—high-road and union jobs pay better, have better benefits, and are safer than non-union jobs. Workers who are members of or are represented by a union earn significantly more than those who are not across all relevant industries and occupations, with especially pronounced benefits for low-wage workers. For example, on average, union members earn a premium of 15% higher wages than non-union workers in the utilities sector and 45% higher wages in the construction sector. 

The Inflation Reduction Act will help address the racial and economic inequality in this country by ensuring that these credits go to historically marginalized communities. These credits will provide additional economic development and job creation opportunities for disadvantaged communities, including those that have been disproportionately impacted by pollution and the transition to a clean economy. 

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