By Blake Jackson
Federal clean energy tax credits are at risk of being removed in the new budget reconciliation bill. Pennsylvania’s U.S. Senators are being urged to protect these credits, which help the state’s economy, environment, and energy future.
According to Energy Innovation, a nonpartisan think tank, removing these credits could lead to the loss of 26,000 jobs in Pennsylvania by 2030. That number may rise by 2035 if the tax incentives from the Inflation Reduction Act are repealed. These incentives help clean energy projects like solar, wind, and battery storage grow.
"In Pennsylvania in particular, we found that the loss of the clean energy tax credits would lead to $60 per year in higher household energy bills by 2030 growing to $80 per year by 2035," said Robbie Orvis, senior director of modeling at Energy Innovation. "That amounts to more than $2 billion more in spending on energy for Pennsylvanians between 2025 and 2035."
Between 2025 and 2035, this would cost Pennsylvanians over $2 billion in energy expenses. The state could also lose $5 billion in GDP by 2030 and $6 billion by 2035.
"Solar energy made up 66% of the new electricity-generating capacity added to the grid last year," said Aaron Nichols, a solar expert at Exact Solar. "As people have taken advantage of these incentives, the solar industry has grown, creating thousands of good-paying jobs."
Mike Zimmerman from EDF Action shared that over $1 billion has already been invested in Pennsylvania’s clean energy projects. These include battery and solar manufacturing and grid technology. He added that 27 gigawatts of clean energy projects are waiting to connect to the grid.
Supporters argue that cutting these tax credits could lead to more pollution and higher dependence on fossil fuels, which harms health and the environment.
Photo Credit: istock-fangxianuo
Categories: Pennsylvania, Energy