Industrial policy after the IRA: what operators should do now

7/16/2025

Industrial policy is no longer abstract. The U.S. Inflation Reduction Act (IRA), a landmark piece of legislation, is channeling hundreds of billions into clean energy, manufacturing, and healthcare. Grants, loans, and tax credits are shaping real projects with real timelines. Operators need a clear playbook that covers incentives, permitting, and communications in this new landscape. For instance, in the first year after the IRA’s passage, roughly $220 billion in new clean energy investments were announced, with private capital contributing about $5.50 for every $1 of federal support. The money is flowing - here’s how to capitalize while avoiding pitfalls.

Incentives and eligibility

Don’t chase every program under the sun – focus. Map out which IRA incentives align with your actual projects and timelines. The IRA spans many industries (electric vehicle manufacturing, renewable energy production, battery storage, hydrogen, energy-efficient buildings, and more). Each program has specific criteria: domestic content rules, prevailing wage requirements, apprenticeship mandates, location-based bonuses (like extra credits for projects in energy communities or low-income areas), etc. Start by listing the incentives you think your projects could qualify for, then systematically verify the requirements for each. Create a simple matrix:

• Rows = your projects or major workstreams (e.g., “EV battery plant Phase 1,” “Solar farm 100 MW,” “Green hydrogen pilot”).
• Columns = key IRA programs or credits (ITC, PTC, manufacturing tax credit 45X, DOE loan program, etc.).
• Checkmarks (and note amounts) where a project is eligible or potentially eligible.

This will reveal which projects should move first or which might need tweaks to qualify. For each targeted incentive, assign an internal owner to track it: someone responsible for understanding the fine print (e.g., a finance person for tax credits or a policy person for grants). Keep a single source of truth document or spreadsheet with all deadlines, application dates, credit phase-outs, and statuses of your incentive applications. Include the responsible owner and next action. This prevents missed opportunities and ensures nothing slips through cracks like a filing date. Also, be mindful of stacking rules: some IRA credits can be combined, others not. And check for cap or funding limits – if a program is first-come, first-served, you want to be early. Above all, don’t distort your business to fit an incentive. The tail shouldn’t wag the dog. Use incentives to accelerate or expand what makes sense strategically, not to go on tangents chasing “free” money that comes with strings.

Permitting and sequencing

Federal dollars won’t matter if permits hold you back. In 2025, many IRA-fueled projects are colliding with permitting realities at the federal, state, and local levels (environmental reviews, zoning, grid interconnection queues, etc.). Approach permitting like a critical path item – because it is. Build a permit matrix for each project:

• Identify every permit, approval, or review needed (e.g., NEPA environmental review, Corps of Engineers wetlands permit, state environmental permits, local building and site permits, grid interconnection agreement, etc.).
• Map dependencies (e.g., can you apply for some in parallel? Does one require completion of another? Which ones trigger public comment or hearings?).
• Estimate realistic timelines for each, not just statutory minimums - check how long similar permits have been taking recently in that jurisdiction.
• List the agency contacts or officials involved and note if you have any “in” (even knowing that John at the city planning office is key, and he likes detailed traffic studies, helps you prepare).

Now, create a permit action plan:

• Pre-filing meetings: Wherever possible, engage regulators in advance. Many agencies will do pre-application consultations. Use these to identify any red flags early. Showing regulators a courtesy of early consultation can also build goodwill.
• Sequencing: Determine the critical path (maybe federal environmental review is the long pole). Plan other work around it - e.g., while NEPA is underway (which can take 1-2 years), maybe you can at least start on design or non-invasive site surveys. Don’t sit idle waiting if you can advance other streams in parallel.
• Tracking commitments: As you go through permitting, you might make commitments or mitigation plans to satisfy conditions (e.g., agreeing to certain noise limits or wildlife protections). Document these and ensure they flow into project execution plans. Nothing’s worse than getting the permit then forgetting to comply with a condition because operations wasn’t aware of it. Assign owners for each commitment (e.g., “Engineering to ensure design includes noise wall as per permit condition #12”).

A practical tip: put together a permit calendar with target and actual dates, and update it weekly. Share it with your team so everyone sees the real timelines. If a permit is slipping or you hit a snag (like an unexpected environmental impact or opposition in a public hearing), you need to know fast and pivot – maybe adjust project phasing or bring in additional experts to address issues. In short, treat permitting as part of the build, not a side task. It defines the true critical path and often who holds the cards isn’t you, but an agency. Build relationships with those agencies; be proactive in providing information and addressing concerns. Remember, regulators have their own pressures – if you make their job easier (complete applications, responsive answers, community support), things can go smoother.

Supply chain and labor

Money and permits won’t build a project if you can’t get the parts or people. The IRA has turbocharged demand in sectors like solar, batteries, EVs, and infrastructure, which means certain components and skilled labor can become bottlenecks. Identify chokepoint components - equipment or materials with few suppliers or long lead times (e.g., large transformers, specialized semiconductors, particular grades of lithium or other battery materials, etc.). Just because something wasn’t a bottleneck two years ago doesn’t mean it isn’t now; the landscape has shifted. We’ve seen small-market-share suppliers suddenly become critical single points of failure, as evidenced by recent shortages from semiconductors to baby formula. For each critical component, develop options early:

• Qualify multiple suppliers if possible, even if one is your preferred. At minimum, know the credible alternative and the cost/time to switch.
• Consider reshoring or friendly-shoring key inputs if overseas supply is shaky - the IRA incentives often favor domestic content anyway. It might be worth investing in or partnering with a new domestic supplier, but keep realistic timelines (new factories don’t appear overnight).
• Stockpile or pre-order some items if you can (balance carrying cost vs. risk). In projects, just-in-time can be risky in this climate; a bit of inventory for critical parts could save you a world of pain later.

Also, map out your tier-2 and tier-3 suppliers. Your direct vendor might be fine, but if they rely on a single sub-supplier that’s not scaling, that could bite you. Have conversations down the chain where possible, or at least ask vendors about their supply chain risk management. Now labor - by mid-2020s, unemployment in many skilled trades is low, and IRA funding is creating localized booms (think lots of projects in the same region all hiring welders, electricians, etc.). You may face a shortfall or wage pressure, especially if your project is in a region with concentrated investment (leading to wage inflation and poaching). Plan for longer hiring and training curves:

• If you need specialized skills (like solar panel installers, high-voltage electricians, certified welders for pressure vessels, etc.), start recruitment and training well before you need full workforce. Assume new hires (especially if you have to bring in less experienced folks) will take time to reach full productivity.
• Partner with local community colleges, trade schools, or union apprenticeship programs. For example, if you know you’ll need 50 certified electricians in 2 years, now is the time to engage the training pipeline. Offer input on curricula or donate equipment if needed to accelerate training. Some IRA provisions actually require apprenticeship utilization - leverage that to your advantage by building a pipeline.
• Consider relocation incentives for workers if the local pool is insufficient. But bear in mind, if everyone starts paying premiums to attract scarce talent, the labor cost will skyrocket. It might be wiser to invest in training locals who are underemployed. That can also score points in permitting and community relations.

Retention is part of this too. High turnover kills timelines. So once you have trained people, aim to keep them: competitive wages (IRA projects often come with prevailing wage requirements anyway), good safety and working conditions, and maybe a visible path to stable employment (e.g., if this project is temporary construction, maybe you can help place them in the next project or into operations roles after construction). Build labor risk into schedules. If you assume a crew can do X work in Y time, add buffer if you know the crew will be green or smaller than ideal. And track labor market data for your region/industry - if you see labor participation in construction dropping or another big employer moving in and hiring 500 people with similar skills, adjust accordingly.

Messaging that matches reality

Announce when the work is real. The IRA hype is big - there’s political pressure to tout successes, and companies naturally want to highlight wins. But credibility is key. We’ve all seen big announcements that never materialize. Avoid that trap: link any public claims to tangible proof points (permits secured, contracts signed, actual ground broken, production milestones met). For example:

• Instead of “We plan to invest $100 million to build X,” say “We have secured permits and financing for a $100 million X facility, and construction starts next month.”
• If using projections (jobs, output), make sure they’re defensible and update them as needed. Provide context: “expected to create 500 jobs (based on similar facilities’ staffing)” and then later, if it turned out 400, be transparent about that and why.
• Provide numbers you can defend. If you claim “Our new plant will reduce carbon emissions by 2 million tons,” be ready to show the calculation. Opponents or press will challenge fuzzy math and speculative timelines. Also, in this environment, avoid over-promising on speed. There’s a lot of pressure to deploy fast (and IRA timelines are indeed tight for certain credit windows), but don’t publicly commit to an unrealistic timeline just to impress. Under-promise and over-deliver if you can. Far better to say “operational in 18 months” and then open in 15, than promise 12 and slip to 15. Announce achievements, not aspirations. Or at least clearly label which is which. It’s fine to share a vision, but separate “we intend/hope to” from “we have done.” This builds trust with stakeholders (be they community, regulators, or investors). They start to believe that when you say something, it’s solid. Finally, keep communications on a schedule. If you told the community you’d update them quarterly on progress, do it. Even if it’s “still in permitting, nothing new,” that consistency builds credibility. Conversely, a loud initial splash followed by silence breeds skepticism.

Coordination with policymakers

Stay engaged with the government partners who helped make your project possible (or who could smooth its way further). The IRA era is unique in that companies and government are a bit more entwined - whether through grants or just policy support. Being specific and constructive in your asks can further unlock progress. If you need additional support, such as:

• Sequencing reviews: Maybe you need a certain federal permit to be expedited or a state to work in parallel with federal. Don’t just complain; propose a plan. “If Agency X can complete permit Y by June, we can start construction before winter which is critical. We have all documents ready to assist.” Sometimes a polite, targeted request can get a timeline bumped if it aligns with policy goals (like creating jobs fast).
• Clarifying guidance: The IRA is new and some rules (tax credit guidance, definitions) are still being clarified. If an ambiguity is holding you back (say the definition of “energy community” for bonus credits, or what counts as domestic content), coordinate with industry groups and respectfully push agencies for clarification. Offer your scenario as an example - it can help them see why clarity matters.
• Matching funds or local support: Perhaps a small tweak from local government (like a tax abatement, or infrastructure improvement, or job training program) would amplify your project. Make the case, with data: “If the city extends water infrastructure by 1 mile to our site, it enables not just our factory but potentially an entire industrial park with X potential future jobs.” Align it with their interests.

Always bring independent validators when asking for adjustments. For example, an academic or third-party study backing your request (“University Z’s analysis shows this permitting change could cut 3 months from timelines without environmental harm”) or a customer letter saying why your project is needed. Credibility compounds here - requests that are practical, well-sourced, and framed around public benefit (not just your profit) are much more likely to be received well. You’re essentially helping policymakers achieve the policy’s intent (jobs, clean energy, etc.), so frame your asks as removing roadblocks to mutual success. Track these engagements in your earlier “single source of truth” perhaps - which officials you’ve talked to and what was asked/agreed. Policy support often involves long follow-ups and memory can fade; a new agency head might come in, etc.

Global context

The IRA isn’t happening in a vacuum. Other regions are responding with their own industrial policies - the EU has its Green Deal and CHIPS Act equivalents, countries in Asia ramping production, etc. This is creating a new global supply chain map. Operators should monitor these developments and consider their long-term strategy beyond just snagging IRA money. For example:

• Europe: The EU’s response includes the Green Deal Industrial Plan, tweaks to state aid rules to keep investment, and the Critical Raw Materials Act to secure minerals supply. If you operate or sell into Europe, keep an eye on what incentives or regulations emerge there. It might make sense to also take advantage of EU incentives if you have a footprint there, or at least ensure your IRA-funded expansions align with eventual EU market needs (e.g., battery content rules for EVs in Europe).
• Friends or foes?: Geopolitical dynamics (US-China tensions, friendshoring vs. decoupling debates) can impact your plans. If you relied heavily on China or other countries for parts, know that the IRA’s thrust (and related policies like export controls on tech) is pushing towards “de-risking” supply chains. We’ve seen a trend: a growing number of US companies are cutting or pausing investment in China while boosting capacity in places like Mexico, Vietnam, and India. If your strategy hasn’t been revisited in light of that, do so. Perhaps sourcing more from Mexico (which, as data shows, has surpassed China as a destination for US foreign investment) might benefit both your resilience and your “made in USA” compliance.
• Global incentives race: If everyone subsidizes the same industries, where do you place bets? It could lead to oversupply in some areas and shortages in others. For instance, if multiple countries all build battery gigafactories, by late 2020s there might be battery oversupply but still a shortage of, say, sustainable aviation fuel capacity or transmission infrastructure. Keep a strategic view - don’t just follow the money crowd blindly if it looks like it’s creating a bubble.

The takeaway: use the IRA as a springboard, but keep scanning the horizon. Align your five-year plan with not only US policy but where you think global markets and policies are headed (e.g., carbon border adjustments, trade alliances, etc.).

Risk management

All these opportunities come with risks:

• Political risk: A change in administration or Congress could tweak or even reverse some provisions (though outright repeal of IRA provisions with strong private uptake is unlikely given voter and industry support, but things like permitting reform could swing). Also, state-level politics matter; a new state government could oppose a project or change local incentives. Stay engaged with policy advocacy to protect what you’ve invested in. Data shows the IRA has broad support (a Data for Progress poll showed ~70% of voters support its clean energy investments), but you never know.
• Legal challenges: Watch out for any lawsuits. For example, if someone sues over how an IRA program is implemented (maybe claiming a certain grant process was flawed or a regulation oversteps), that could pause or alter things. We’ve seen legal fights around big legislation implementation before. Having alternate plans or cushions helps.
• Bureaucratic complexity: The sheer complexity of federal and state programs can lead to mistakes or compliance issues. E.g., misreporting on a tax credit usage and facing IRS questions later, or not meeting a requirement and having to pay back a grant. Maintain good legal counsel and compliance checks. Document how you meet every condition (like those prevailing wage and apprenticeship requirements - keep meticulous records to avoid clawbacks).
• Execution risks: A ton of money can lead to sloppy execution if one isn’t careful - budgets can inflate because “hey, it’s subsidized,” projects might rush and break. Don’t let free money erode discipline. Manage your project as if it were your money - because it ultimately is, in the sense of your company’s opportunity cost and potential liability. Monitor scope creep and cost overruns; keep contingency funds.

To handle these, treat risk management formally. Perhaps quarterly, do a risk review of your IRA-related endeavors:

• List top risks, probability/impact, and mitigation plans (like a typical risk register).
• Signals to watch (for each risk, what early indicator might show it’s rising? e.g., if a certain politician starts tweeting against the program, or if interest rates jump making financing harder, etc.).

No one likes to dwell on downside when excitement is high, but prudent operators do. It’s easier to adjust course early than when a risk materializes fully.

Resources

Don’t reinvent the wheel when it comes to tracking IRA developments and best practices. There are resources you should regularly consult:

• Official guidance: Bookmark the U.S. Department of the Treasury’s IRA guidance page, the Department of Energy’s IRA programs page, etc. They update FAQs, notices, and proposed rules often. Subscribe to their newsletters if available.
• Trade associations: Many industry groups (solar, wind, auto, manufacturing) have IRA trackers and working groups. They often host webinars or publish summaries that translate legalese into actionable info. For example, SEIA (solar) or API (if you’re in energy) or the Chamber of Commerce might have briefs.
• Consulting firms and law firms: Big ones have created free trackers or white papers (some have online IRA trackers showing implementation progress). These can save you time parsing what’s new.
• Local agencies: State energy offices or economic development agencies often align state incentives with the IRA and can guide you to stack benefits or navigate local bureaucracy in synergy. Engage them - many states have “IRA task forces” aiming to maximize inflow of funds to their state. They want projects like yours to succeed.

And internally, ensure your team is looped in: finance, legal, operations, communications - all should be aware of this plan and their role. The IRA opportunity spans silos, so break those silos down inside your org.

A quarterly rhythm

As an operator in the thick of IRA-driven expansion, adopt a quarterly game plan that ensures nothing slips and you’re keeping pace:

• Q1: Nail down your permit calendar and confirm which incentives you’re going for. Finalize design/engineering enough to have solid permit applications. Submit key permits this quarter if you can (get in line early). Also lock in major vendors or at least capacity reservations (with contingency clauses). Essentially, set the foundation: paperwork in motion, supply agreements in principle, and a detailed project execution plan. If using tax credits, make sure your tax team or advisors have the latest rules (like transferability options, etc.) so they can plan out how to monetize them. Publish a simple “status brief” to stakeholders (internal or external as relevant) summarizing “here’s what we’re doing this year on Project X.”
• Q2: Convert soft commitments to hard ones - this means by Q2, aim to have turned MOUs into signed contracts, preliminary permits into actual permits (or at least draft EAs into final EAs), etc. Break ground if possible on site works that don’t need all permits (e.g., clearing or grading that might be allowed). Begin hiring key staff (site manager, etc.) so they can build the team. Update your numbers and risk assessments; as details sharpen, so should your budget and timeline. Make any necessary adjustments if earlier assumptions proved too optimistic.
• Q3: Now it’s execution mode - many IRA projects will have to show progress by end of year for various reasons (optics or phased credit deadlines). Test your supply chain contingencies now: do a trial run or order a small batch to see lead times in reality. If you find any supplier delays, trigger backup plans now (better in Q3 than in Q4 when everyone’s panicking to meet year-end targets). Publish a mid-year workforce progress report: how many hired, how many apprentices taken on, etc. If you’re relying on grid connection or utility work, ensure by Q3 you have that nailed down or escalated to regulators if it’s stuck.
• Q4: Close gaps and get ready for the next year’s milestones. By Q4, any last permits or approvals should ideally be in hand - if not, you need an all-hands effort to push them over the line or a workaround to re-sequence work. Brief stakeholders (maybe local community or press) on progress - time to show some tangible wins (photos of construction, equipment arriving, etc.). Also start planning next year: budgets, any new IRA provisions kicking in (some credits step up/down over time). Internally, brief management and possibly investors on what to expect next year, ensuring continued support and resources.

This quarterly cadence keeps you from bunching everything at year-end. It also aligns with many credit qualification timelines (some credits have yearly benchmarks or phased requirements).

A one-page tracker to run the program

With so many moving parts, a dashboard or tracker is vital. Design a one-page program tracker that you update regularly and can share in meetings:

• Incentives: List each incentive (tax credit, grant, loan) you’re pursuing, its status (e.g., “45X manufacturing credit - applied, awaiting allocation” or “PTC - will claim on 2025 taxes”), an owner, any deadlines, and expected value. This keeps the finance team and execs aligned on what benefits are in play.
• Permits: List key permits with authority, status (“submitted”, “approved”, “pending appeal”, etc.), any critical dependencies, and next action. Include who’s responsible for follow-up.
• Supply chain: For each critical component, list primary supplier, backup, current lead time, and any issues/mitigations (“Transformer - Supplier A (ordered, 8-month lead), backup Supplier B available at +15% cost if needed”).
• Workforce: Key roles or trades, targets vs. actual (“Welders: need 20, hired 15, training pipeline 5 finishing next month”), partnerships (like local college - note if they’re delivering). Possibly include retention metrics or absenteeism if that becomes an issue.
• Narrative: A few bullet points of key claims tied to milestones - could double as your external message points. E.g., “Key claim: Project on track to start production by Q4 2026 - supported by permits all in hand and orders placed for long-lead equipment.” Keep notes on upcoming briefings or “showcase” events too (like a planned groundbreaking ceremony or site tour for officials).

Essentially, this is the cockpit instrument panel for your IRA initiative.

Outreach kit contents

You’ll likely be engaging with media, local communities, and officials regularly – have a ready kit of materials that you keep updated:

• One-page narrative: A high-level summary of the project or program, emphasizing the tangible milestones (permits, contracts, jobs created so far, money invested so far) and future timeline. Align this narrative with things policymakers care about: jobs, economic growth, innovation, climate benefits. Update the numbers and achievements each quarter so it’s always current.
• Fact sheet with verifiable numbers: Like an FAQ or fact sheet to share with press or community. Include key stats (X jobs, $Y investment, Z MW of clean power, etc.) with sources or context. Any number you put here, ensure a skeptic could verify it. If you say “300 jobs,” ideally you have a breakdown or a way to substantiate that (maybe 150 currently hired + 150 projected with construction ramp-up).
• Visual timeline: A simple graphic showing past milestones achieved (groundbreaking, permitting done, equipment delivered) and upcoming ones (construction phases, operational date). This helps non-technical stakeholders grasp progress at a glance.
• Contact sheet: Names and contact info for follow-ups - e.g., your media spokesperson, community liaison, project manager (for technical queries). If you brief local officials or press, they appreciate knowing who to call for what.

Having this in your back pocket means whenever you’re asked to present or someone important visits the site, you have polished info to hand out or show, rather than scrambling to assemble something last-minute (and risking errors). It also ensures consistency - everyone on your team sings from the same song-sheet. Operators who align incentives, permitting, and disciplined execution will move faster and with fewer surprises. The IRA era rewards those who are proactive and detail-oriented - money is there for the taking, but only if you navigate the process smartly. By staying organized, honest in your communications, and agile in execution, you set yourself up not just to win funding but to deliver successful projects on the ground. And ultimately, that’s what this is all about: turning policy into concrete outcomes - literally.