Technical Appendix

The direct jobs totals in this brief are calculated from announced job numbers from press releases that the BlueGreen Alliance has collected from several sources. These include: BlueGreen Alliance and Atlas Public Policy’s EV Jobs Hub, Climate Power’s Clean Energy Boom Reports, and the Clean Investment Monitor. This excludes construction jobs building or expanding facilities as well as all the other jobs associated with deploying clean technologies. We focus specifically on manufacturing locations. These are likely to have received either the 48C Qualifying Advanced Energy Project Tax Credit, the 45X Advanced Manufacturing Production Tax Credit, or are in the supply chain for electric vehicles and thus benefit from increased household demand thanks to the 30D New Clean Vehicle Consumer Tax Credit.

The indirect and induced jobs numbers in this brief are estimates, calculated by multiplying direct numbers by jobs multipliers published by the Economic Policy Institute. These numbers are a standard product of input-output modeling, which is a common technique used to estimate the impacts of economic development strategies. Input-output models use detailed data about the observed inputs and outputs of different economic sectors. This kind of data shows, for example, how much steel is purchased by durable goods manufacturers and how much employment is required by the steel mill to produce that steel. These numbers shed light on how the economic activity that creates a direct job in manufacturing stimulates economic activity in the supply chain and the economy at large, with that economic activity creating employment of its own.

The employment footprint in clean tech manufacturing at risk from the house reconciliation bill is tabulated in A.1. Direct Jobs refers to the sum of jobs announced by companies in manufacturing operations and maintenance and are assumed to be indefinite in duration. Indirect and induced jobs are calculated by multiplying technology-specific subtotals of each state’s direct jobs by the appropriate industry-specific employment multiplier, as reported in table A.2.  To put these numbers in context, we calculate the average manufacturing employment by state for the decade prior to IRA passage (2012-2022) using data provided by the Bureau of Labor Statistics. We then express the direct manufacturing jobs in terms of the percentage growth those jobs represent in the manufacturing employment of a given state.

Table A.1 Manufacturing Employment Footprint at Risk

We draw all our employment multipliers from the Economic Policy Institute’s 2019 Report, “Updated Employment Multipliers for the U.S. Economy.” Making use of this resource required us to relate the industry details of locations with announced job creation to the appropriate industry category for which a multiplier is reported. Clean energy component categories were related to the NAICS-based industries in EPI’s report using the “Industry Finder” tool from the Bureau of Labor Statistics. Table A.2 reports the specific multipliers used in the analysis by the specific industry subcategory.

A.2 Employment Multipliers by industry subcategory