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Could clean energy tax credits cease to exist? AZ advocates say much is at stake

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The Republican backed tax-package being considered in Congress includes provisions that would repeal clean energy tax credits that some say have been transformational for a state like Arizona.

It's all part of the huge budget bill that looks to advance President Donald Trump's agenda on several issues and includes provisions that would phase out a number of clean energy tax investments passed because of the Biden era Inflation Reduction Act.

Christian Stumpf, director of external affairs of The Nature Conservancy, said billions of dollars and thousands of jobs in Arizona are in jeopardy.

"The IRA has truly been a catalyst for infrastructure investments across Arizona. We've really increased our state's leadership position in the clean energy economy and we are providing good paying jobs that are putting Arizonans to work. We just can't afford to let that go away," he explained.

Since the passage of clean energy investments in 2022, companies have announced dozens of clean energy projects and created over 13,000 jobs in rural and urban Arizona communities - many of which are 'red' districts. But some provisions in Trump's "big, beautiful" bill have sparked concerns among Republicans who feel the repealing of credits would negatively impact energy production and the economy. If changes are made in the Senate, the legislation will need to be passed by the U.S. House again.

While some Republicans in Congress have questioned the impacts of the IRA and have opposed it because they claim it would raise taxes without helping curb inflation, Stumpf said it has been "nothing but a success so far," and encourages local elected officials to advocate for the clean energy investments that have been made possible.

"We're having really positive conversations on both sides of the aisle and we're hopeful that both sides can come to meaningful compromise. We are trying not to see this through a Republican or Democrat lens," he explained. "We really think that there is a strong case to be made for economic vibrancy and supporting sustainable communities."

Republican leaders are hoping to pass the huge budget bill and have it signed by Trump before the Fourth of July.

Arizona News Connection - a bureau of the Public News Service