Build Back Better Investments Will Create Jobs Across the Country
The estimates developed for this report were developed using the 2019 IMPLAN model of the U.S. economy. We developed expenditure estimates based on the American Jobs Plan, the Infrastructure Investment and Jobs Act, and current proposals in the Build Back Better plan and allocated the expenditures across the individual economic sectors using a combination of the pre-defined IMPLAN industry spending patterns for various types of investments.
For industrial programs (the wind, solar, and battery manufacturing and supply chain incentives, the industrial decarbonization programs, and the 48C tax credits), we instead used jobs multipliers for 48C and CCUS projects from a recent jobs analysis by IEc and Inforum.
Note that the job estimates reported here are more appropriately called “job-year equivalents.” Each “job” represents an increase in demand for employment sufficient to employ an individual person full-time for one year. Additionally, all job numbers are over a 10 year period. When labor markets are tight, a significant number of jobs created may be workers hired away from other jobs, so not all of the jobs created will be net new employment.
For auto industry programs (the ATVM and conversion and retooling grants), in addition to calculating job years as described above, we also estimated the long-term jobs that would be created or sustained by the establishment, retention, or growth of the factories that receive federal support. These estimates are based on a BGA analysis of the ATVM. Significant added impacts on manufacturing jobs would be expected as a result of provisions such as the expansion of the 48C or other manufacturing tax credits.
Finally, none of the numbers included here account for increased domestic content requirements.