Congressional Moves Challenge the ‘America-First’ Energy Vision

In Arizona, solar development has become a thriving business, bolstered by a favorable climate and supportive policies. However, recent federal efforts threaten to undo the bipartisan energy tax credits essential for sustaining economic growth and job creation in the region. These tax incentives have paved the way for greater access to solar and energy storage technologies.

Congressman Juan Ciscomani is advocating for these critical policies, demonstrating a commitment to Arizona’s economic interests. His support aligns with a broader recognition of how pro-business tax measures enhance the livelihoods of Arizonans and contribute to national energy independence. Alongside 20 House Republicans, Ciscomani signed a newsletter backing the technology-neutral Energy Tax Credit, emphasizing a need for stability amidst uncertain tax policy discussions.

As a contractor immersed in the solar solutions sector, I’ve observed the profound impact these tax credits have on Arizona. The state ranks fourth in the nation for installed solar capacity, having added nearly 2,000 megawatts in 2024 alone. My work on over 250 school solar projects has saved the public education sector upwards of $12 million since 2011. Moreover, since 2022, favorable national policies have enabled the emergence of more than 50 new energy manufacturers in Arizona, injecting around $1.46 billion into energy and transportation investments.

The potential repeal of these tax credits would have widespread repercussions. Homeowners would face increased utility costs, losing the option to integrate rooftop solar solutions. Simultaneously, utility providers would lose access to the most cost-effective new-energy resources, particularly solar and storage systems, which accounted for over 90% of new utility-scale generation in 2024. A recent study warns that rolling back these incentives could lead to household energy costs rising by nearly $500 annually, adding strain as Arizona prepares for an influx of energy-intensive data centers.

The pressing demand for energy, driven by new developments and existing infrastructures like the Palo Verde Nuclear Plant, requires significant capacity expansion—potentially tripling by 2038. Without access to energy tax credits, taxpayers may find themselves navigating a rising tide of energy costs, a reality understood by Representative Ciscomani.

Despite challenges, Arizona’s solar industry holds unparalleled potential for economic growth and skilled job creation. If the current administration aims to promote domestic manufacturing and energy independence, maintaining technology-neutral tax credits is essential. Recent analyses indicate that the removal of federal funding and tax incentives could significantly diminish Arizona’s GDP by $2.89 billion by 2030 and $1.8 billion by 2035.

I commend Representative Ciscomani for opposing efforts that undermine the value of energy tax credits for our businesses and communities. I encourage residents to express their support for him and other congressional leaders to safeguard our energy choices and economic prospects.

John Mitman is the founder of Obodo Energy Partners and serves as board president of AriSEIA.