Protect Clean Energy Investments: A Boost for Jobs, the Economy, and Every Arizonan

The Inflation Reduction Act (IRA) is significantly reshaping Arizona’s infrastructure landscape, bolstering the state’s role in clean energy while generating quality job opportunities for residents.

This legislation has positioned Arizona as a key player in the clean economy, attracting investments across various sectors including electric vehicle (EV) production, battery recycling, and solar energy. As a result, both rural areas and urban centers are experiencing economic benefits.

While different organizations have unique missions, they collectively acknowledge the IRA’s clean energy tax credits as essential for supporting local families and businesses. These credits not only strengthen Arizona’s economic momentum but also promote healthier, more sustainable communities.

Moreover, these investments are critical in combating severe climate challenges such as extreme heat, poor air quality, and wildfires. We are at a pivotal moment; action must be taken swiftly to address the intertwined crises of climate change and biodiversity loss.

The ongoing congressional budget discussions pose a risk to these crucial tax credits. Advocates are urging lawmakers to maintain these incentives to ensure continued investment in infrastructure throughout the budget reconciliation process.

Recently, 21 House Republicans endorsed a letter urging Congress to protect these tax credits, with U.S. Rep. Juan Ciscomani from Arizona’s 6th Congressional District being a notable supporter. His emphasis on ensuring changes to the tax code remain targeted speaks to the shared commitment to fostering private-sector investment.

Research by The Nature Conservancy reveals that, from now until 2032, these tax credits could generate over 6,600 jobs annually in Arizona. They are projected to add about $373 million to household incomes each year, resulting in an economic impact of approximately $784 million annually and contributing around $116 million in tax revenue.

Introduced in 2022, the tax credits incentivize both individuals and businesses to develop clean energy solutions. This initiative has spurred significant growth in Arizona’s clean energy market, exemplified by the construction of a lithium-ion battery recycling facility by Heritage Battery Recycling in Eloy, which aims to bolster North America’s battery supply chain.

The tax credits receive bipartisan support in Congress as they shield families from rising energy costs. Integrating clean energy options with traditional power sources enhances reliability and affordability in electricity distribution.

With energy demand in Arizona climbing due to economic growth and population increases, a multifaceted energy approach that prioritizes clean, affordable renewable technologies is essential. The state’s diverse landscapes—from stunning deserts to lush forests—highlight its unique biodiversity, which stands to benefit from ongoing investments.

Advocates encourage residents to reach out to their representatives, urging them to safeguard these crucial investments for a sustainable and prosperous future.

Daniel Stellar is state Director of The Nature Conservancy in Arizona.

Kimber Lanning is CEO of Local First Arizona.