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By Danielle Smith
March 25, 2025
Pennsylvania is among the five states projected to be hit hardest if the Inflation Reduction Act is repealed.
A report from the think tank Energy Innovation showed the law has brought more than $1.33 billion dollars in clean energy and transportation investments, creating nearly 4,700 jobs.
Megan Ziegler, CEO of the Southwest Pennsylvania Municipal Project Hub, said the Inflation Reduction Act helps modernize infrastructure and supports local governments and schools in upgrading outdated facilities. She added reducing tax credits and clean energy projects would negatively affect the Pennsylvania economy and environment.
“These are called direct pay or elective pay,” Ziegler explained. “This was a great tool because this was the first time that local governments, nonprofits and schools, because of their tax-exemption status, were able to offset these investments in their buildings and their systems the way that private industry has been leveraging those for years.”
The report revealed repealing existing federal clean energy tax credits and funding programs would increase average annual household energy costs in Pennsylvania by nearly $60 per year in 2030 and more than $80 per year in 2035.
Zeigler pointed out many homeowners in southwest Pennsylvania have used state rebates and tax credits to make energy efficient upgrades, helping to lower costs as temperatures rise. She warned cutting the programs would raise expenses and stressed the need for bipartisan support because clean energy investments create jobs and strengthen the economy.
“There was a lot of IRA funding that was dedicated to grid stability,” Zeigler noted. “Ultimately, our region needs to make smart investments by diversifying our grid with more renewables, microgrids or even hydroelectric systems. This reduces blackouts and saves ratepayers over time as well.”
Robbie Orvis, senior director for modeling and analysis at Energy Innovation, said the nationwide study showed what would happen to energy projects and jobs between 2025 and 2035 if cuts are made.
“When we compared the top 10 states for each of those side by side, we found that there were five states that were in the top 10 in both of those categories, and those were Texas, Florida, California, Pennsylvania and Georgia,” Orvis reported.
He added those states risk higher energy bills and job losses due to growth in population, manufacturing and electricity demand. A Moody’s analysis found President Donald Trump’s 2024 policy plan could fuel inflation, slow the economy and trigger a recession by the middle of this year.