Though debate continues over the Inflation Reduction Act’s (IRA) effectiveness in curbing inflation, one area of clear impact is emerging: its provisions are spurring investment in renewable energy, construction, and manufacturing across both Republican- and Democratic-led states. While the law may not satisfy every political priority, its tangible results in energy production, job creation, and national security merit careful consideration—particularly as some lawmakers push for its repeal.

“Repealing the Inflation Reduction Act could slow our ability to build more power generation and increase the risk of rolling blackouts and higher energy costs,” warn experts observing how the IRA has reshaped the country’s energy landscape.

At the heart of the IRA are tax credits for clean energy generation, which have unlocked billions of dollars in private investment. Those dollars are not only funding the expansion of solar, wind, and other renewable energy sources—they’re also revitalizing communities with new construction projects and domestic manufacturing jobs, many of which are in red states often skeptical of climate policy.

Clean energy now makes up around 21.4% of the national energy mix, and the IRA's incentives are helping expand that share. Developers benefit from reduced project costs, and consumers, in turn, see lower energy prices—a rare economic win-win. Importantly, these benefits have transcended partisan lines. Wind farms in Texas, solar manufacturing in Georgia, and offshore wind staging in New Jersey all share a common thread: IRA funding.

“The bill speaks more to renewable energy innovation and increase in energy independence to support U.S. economic growth than to direct economic impact. Repealing it wholesale risks far more than we might anticipate,” the report states.

Grid Under Pressure, Demand on the Rise

The IRA comes at a crucial moment. America’s energy infrastructure is aging, and the power grid is under growing strain. Electric vehicle (EV) adoption is rising sharply, with over 71 million EVs expected on the road by 2035, each requiring an average of 400 kWh per month. Meanwhile, the explosion of data centers—which power cloud computing, AI, and digital services—is expected to double their electricity usage in the coming years.

Without aggressive new energy generation, the result could be energy shortfalls, blackouts, and higher utility costs—especially during heatwaves or winter storms.

“Today’s decisions don’t impact today’s costs, they impact tomorrow’s ability to grow our economy,” the article warns, suggesting that repealing IRA provisions could have unintended long-term consequences.

National Security and Economic Growth at Stake

Beyond cost and supply, the IRA’s benefits extend into national security and supply chain resilience. By promoting domestic production of solar panels, wind turbines, and storage technologies, the U.S. reduces its reliance on adversarial nations for critical components and rare earth minerals.

“There is nothing more damaging than energy you need but can’t find,” the article notes, highlighting the importance of diverse energy sources.

“Energy diversity isn’t just good economics — it’s a good security policy.” Like a diversified financial portfolio, having multiple sources of power—solar, wind, hydro, nuclear, and fossil—protects against volatility, cyberattacks, and price gouging. With a resilient system, if one source fails or is attacked, others can bridge the gap, keeping homes powered and businesses running.

Additionally, the IRA’s domestic content requirements have encouraged reshoring of manufacturing jobs that had previously been outsourced overseas. These include not only solar and battery facilities but also high-skill roles such as wind turbine technicians and offshore maritime jobs.

“Since the IRA has been enacted, the renewable energy industry has created thousands of jobs and established numerous domestic manufacturing plants on U.S. soil spurred by these domestic supply tax credit incentives,” the article explains.

Bipartisan Legacy of Tax Credit Tools

The use of tax credits to promote innovation is hardly new or partisan. They’ve been used for decades to jumpstart sectors like artificial intelligence, GPS, the internet, quantum computing, and biotech. Renewable energy is now following that same path, leveraging public-private partnerships to move the country closer to a cleaner, more resilient energy future.

“Tax credits are not a new concept — they have been a bipartisan policy tool used for decades to support emerging technologies,” the article adds.

A Call for Careful Consideration

While critics of the IRA argue that certain portions could be refined, experts and industry groups caution against repealing it outright. Doing so, they say, would unravel progress not only in climate goals but also in economic competitiveness, infrastructure modernization, and global energy leadership.

“While there are certainly valid critiques of the IRA and potential benefits to revising pieces of the legislation, full repeal would undermine the significant progress made in clean energy innovation, economic growth and national security,” the article concludes.

With energy demand rising and geopolitical risks multiplying, preserving and refining the IRA may be a more strategic move than eliminating it—especially if the U.S. aims to lead the global energy race while protecting its economy at home.

Originally reported by Emmanuel Martin-Lauzer in Construction Dive.