Governor Katie Hobbs and Arizona Leaders Call on Congress to Protect State’s Energy and Manufacturing Investments

Phoenix, AZ -  Today, the Arizona Commerce Authority released new numbers highlighting the jobs and business investment at risk due to cuts from the Congressional Reconciliation Bill. In total, the reckless legislation would put 69,000 jobs and $58 billion in investments in Arizona at risk.

“The Arizona Promise is built on creating opportunities for working-class Arizonans and growing our economy,” said Governor Katie 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.  

“Many Arizona communities are benefiting directly from these programs and businesses are choosing to build, invest, hire, and expand with these incentives. A repeal of the tax credits will jeopardize Arizona’s economic momentum and the jobs of Arizona workers. Making matters worse, rolling back these tax credits would drive up energy costs at a time when Arizona families are already struggling to make ends meet. By 2029, Arizona households would see an 11.4% increase in electricity costs, and commercial and industrial users would experience a 15.9% increase. Politicians in Washington, D.C., are already creating uncertainty with unnecessary tariffs and an escalating trade war. Ending these tax credits early would slow down job growth, drive up costs, and hurt the progress Arizona has made. As Arizona’s population grows and our economy thrives, now is the time to protect these federal investments and Arizona’s economic future.”

Arizona elected and business leaders join Governor Hobbs’ call for Congress to protect the federal tax credit program that is driving job and economic growth around the state. 

“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 Senator Mark 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 Senator Ruben 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 Congressman Greg Stanton. "I want the industries of the future here in Arizona, not overseas.”

“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 billions of dollars in investment and tens of thousands of jobs. 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.”

ARIZONA INVESTMENTS 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 the energy and tech economy. The following is a summary of the impact of these programs in Arizona: 

• $58 billion in potential, existing, and announced private-sector investment in Arizona and 69,000 potential new jobs created, according to the Arizona Commerce Authority.
• 134 economic development projects attracted statewide, according to the Arizona Commerce Authority.
• Top-five ranking nationally among states benefiting from Inflation Reduction Act investments, according to the Clean Investment Monitor.
• Projected 11.4% increase in annual electricity bills per household by 2029 if credits are repealed, according to the Clean Energy Buyers Association.