Kelly, Gallego, Stanton, Ansari, Hobbs, and Other Arizona Leaders Call on Congress to Protect Arizona’s Energy & Manufacturing Investments

69,000 jobs and $58 billion in investments in Arizona in jeopardy without federal tax credits

Arizona Senator Mark Kelly joined Governor Katie Hobbs, Arizona elected officials, and business leaders in opposing provisions in Trump and House Republicans’ budget bill that would jeopardize Arizona’s economic momentum as a hub for innovation in energy, clean tech, and manufacturing industries by rolling back critical tax credits created in the Inflation Reduction Act.  

“Arizona has worked to make sure we’re a great place to do business—with the help of both Democrats and Republicans over the years. Because of this we’ve benefitted more than other states from the Inflation Reduction Act’s renewable energy tax credits. We see it in the big solar and battery storage projects bringing low-cost, reliable power to the grid and in the dozens of companies who have invested to bring manufacturing here, creating thousands of good-paying jobs. Republicans’ plan to cut these programs will put thousands of Arizonans out of work and make energy prices go up. I’m working with Governor Hobbs and others to stop the bad Republican plan and protect Arizona’s economy,” said Sen. Kelly.   

“Trump and House Republicans promised to make life affordable. Instead, they’re actively cutting jobs. This isn’t just a tax plan—it’s a direct assault on Arizonans who simply want to get ahead and provide for their families. Slashing clean energy tax credit jeopardizes billions in investments by stalling our state’s economic momentum,” said Sen. Gallego. 

“If clean energy tax credits are repealed, Arizona loses out on tens of thousands of good-paying jobs and families’ energy bills go up,” said Rep. Stanton. “I want the industries of the future here in Arizona, not overseas.” 

“What we have seen so far from the Trump Administration and House Republicans has been chaos and now they want to further jeopardize Arizona’s economy with cuts to jobs and historic investments,” said Rep. Ansari. “This is just bad policy. I’ll continue to work with my colleagues to secure Arizona’s investments and future.” 

“The Arizona Promise is built on creating opportunities for working-class Arizonans and growing our economy,” said Gov. Hobbs. “Over the last three years, Arizona’s economy has boomed, and business investment and job creation have accelerated by leveraging federal tax credits created in the IRA. Since its passage, Arizona’s economy has attracted 134 existing, potential, and announced projects that would be affected by the repeal of federal tax credits. These projects together represent more than 69,000 existing and potential new jobs, and $58 billion in capital investment to grow the state’s advanced manufacturing, energy, technology, and infrastructure industries. The federal government should be working with us in furthering Arizona’s economic success, not undermining our growth.” 

Arizona Investments secured in the Kelly-shaped Inflation Reduction Act that are now at risk: 

These tax incentives have created historic investments in economic and workforce development around Arizona. Through growth in energy, advanced manufacturing, and other improvements in supply chains and innovation, these federal investments are growing and maintaining Arizona’s energy and tech economy. The Arizona Commerce Authority, which leads economic development efforts, has found repealing the tax incentives for energy infrastructure and manufacturing could jeopardize:  

• $58 billion in potential, existing, and announced private-sector investment in Arizona and 69,000 potential new jobs created.  
• 134 project leads attracted to communities statewide.
• The Clean Energy Buyers Association has also projected an 11.4% increase in annual electricity bills per household by 2029 if the Republican-led bill is enacted. 

See what other Arizona leaders are saying:  

“Arizona’s competitive edge in advanced manufacturing is no accident—it’s the result of smart policy, strategic investment, and strong partnerships,” said Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry. “Targeted tax credits supporting domestic production and clean energy innovation have helped accelerate private-sector growth across the state. Preserving them is critical to sustaining Arizona’s manufacturing momentum and keeping us at the forefront of next-generation industries.” 

“We are investing billions of dollars in Queen Creek and look forward to creating high quality jobs in Arizona, as we bring our advanced manufacturing expertise and experience to the United States. We hope Congress will endorse the current tax credit that will help secure a strategic U.S. supply chain and to manufacture leading-edge batteries in Arizona,” said Richard Ra, President of LG Energy Solution Arizona. 

“Continuation of 45X and other clean energy policies give businesses like Lucid certainty to deepen our investments in U.S. production and the communities where we operate. These pro-manufacturing, pro-clean energy, pro-worker policies support our commitment to Arizona and the U.S. as we create good-paying jobs, expand American high-tech manufacturing, develop domestic supply chains, and export more automobiles to foreign markets,” said Jessica Nigro, VP of External Affairs of Lucid Motors. 

“With our highly skilled workforce, reliable energy, and attractive business environment, Arizona has been a big winner for advanced manufacturing projects receiving investments under the Inflation Reduction Act,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “Phasing out or eliminating these financial programs could seriously jeopardize projects in our pipeline as well as those that have already selected Arizona.” 

“Arizona leads the nation in building a clean energy economy that attracts investments, creates jobs, lowers costs, improves air quality, and saves water. A repeal of these tax credits will hurt Arizona workers, communities, and businesses,” said Maren Mahoney, Director of the Arizona Governor’s Office of Resiliency. “Without these federal investments in clean energy technology, Arizona families stand to lose out on good-paying jobs in manufacturing and construction, and risk even higher energy bills.” 

“Arizona is leading the way in building a globally competitive high-tech economy, from semiconductors to clean energy,” said Steven G. Zylstra, president and CEO of the Arizona Technology Council and SciTech Institute. “Phasing out these critical energy tax credits prematurely will pull the rug out from under companies that are actively investing, hiring, and innovating in our state. Arizona so far has attracted more than $58 billion in potential and existing private investment since 2022, producing 134 clean energy and clean tech project leads. Pulling back these incentives now would undercut the very tools fueling our economic momentum. This is not the time to weaken what’s powering Arizona’s ecosystem of innovation.”