Clean energy benefits Indiana's economy, communities and nature
The benefits of federal clean energy tax credits are clear. Adding diverse energy resources to Indiana's grid increases reliability, decreases consumer costs, creates jobs, and has the potential to foster massive economic growth — to the tune of $565.7 million annually.
That is why, in 2022, the federal government created this set of tax credits to incentivize the development of clean energy infrastructure and technologies. In the first two years, $9 billion has been invested in projects across Indiana. An added $20 billion in outstanding investment for projects has been announced but not implemented. Through these tax credits, Indiana has expanded the sector and fostered economic growth to the benefit of all Hoosiers, and there should be more to come.
A new study commissioned by The Nature Conservancy shows that between now and 2032, these credits will annually generate $300.8 million through household income, $59.3 million in local, state, and federal tax revenue, and support 6,300 jobs. Further, these benefits are not isolated to only one industry but span construction, manufacturing, professional services, and the supply chain.
Despite the incredible results and the promise for future growth, these tax credits are at risk of being eliminated. The current budget talks make tax credits an easy target for federal cuts looking to reduce the debt fast. In response, 21 Republican members of the House of Representatives signed a letter showing their support for these credits. But this may not be enough to save them from being cut. That is why we urge the entire Indiana Congressional delegation to use their influence while serving on key committees to protect this potential growth engine for our state.
We can keep Indiana competitive in the national market and support local businesses. However, we must take full advantage of all the available tools, including clean energy tax credits. As the new administration works to encourage industries to return to the U.S., it is imperative to keep Indiana a desirable environment to retain and attract strong economic potential. Indiana, with its clear advantage due to a diverse energy portfolio—both in infrastructure and land—is set to benefit.
Hoosier businesses make decisions based on economic potential. The clean energy tax credits offer a proven way to foster economic growth, bolster manufacturing, lower energy costs, and attract more companies to Indiana—all while diversifying energy sources and promoting clean energy. More clean energy also means cleaner air and water—outcomes that improve Hoosier's quality of life, the local environment, and people's health.
Our elected officials should work to foster economic growth, provide jobs, and lower energy costs, that's arguably why the people chose them to stand for Hoosiers in Washington.
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