Last week (February 10, 2025,) the organization Climate Mayors mailed a letter, signed by 133 Mayors and local officials, to the Chairpersons and Ranking Members of both the House Ways and Means and Senate Finance Committees calling on them not to repeal the clean energy tax credits contained in the Inflation Reduction Act.
Originally reported by Wyatt Myskow in Inside Climate News, the 133 officials, including Climate Mayor Chair/Phoenix Mayor Kate Gallego, wrote in the letter:
“As you develop the framework of tax legislation, we, the 133 undersigned local leaders, urge you to prioritize the economic and energy future of our communities by preserving all clean energy tax credits available to state and local governments through elective pay (direct pay)…”
“…As local leaders, we are concerned that repealing these clean energy tax credits could create economic uncertainty in our communities, as it would prevent us from accessing those important benefits.”
The letter highlights where the Clean Energy Tax Credits have had a positive effect like “solar installations for town halls, alternative fueling infrastructure and charging stations for local government fleets of electric and alternative fueled vehicles, electric school buses, and more. After one year of direct pay implementation, over 1,200 organizations, including over 500 state and local governments, are already accessing these incentives.”
Statistically, the officials cite that the benefits have:
- “Eighty-five percent of announced investments and fifty-three percent of new clean energy jobs have benefited districts represented by Republican Members of Congress – highlighting how these clean energy tax credits are benefiting all Americans;
- ● Over the past two years, companies have announced and advanced over 750 clean energy projects totaling more than 400,000 new jobs, over $422 billion in investments across 48 states and Puerto Rico; and,
- ● Overall, the IRA is projected to deliver $2.7 trillion in net economic benefits from 2025 to 2035. For example, Idaho is projected to receive $15 billion of investments and create 6,700 jobs, and Oregon is projected to receive $1 billion of investments and create 880 jobs.”
In commenting to Inside Climate News, Mayor Gallego stated:
“Whether you care about helping people manage their energy consumption, or American innovation or energy independence for the United States, the clean energy tax credits and direct pay have advanced those agendas,”
They also warned about what would happen across the country, including areas that benefit Republican Congressional Districts if the tax credits were repealed. These include the average family seeing energy costs rise $489 a year and a net jobs loss of 97,000.
In the article written by Myskow and this Blog on the dangers to Trump’s war on science, the local leaders are also understandably concerned with the Musk/Trump/Vance Administration freezing, despite court orders telling them not to do so, of reimbursing Congressionally approved funding for these Clean Energy tax credit projects.
Commenting to Inside Climate News on what could happen to the fifth largest city in the country if Trump continues to hold the funding and the tax credits are repealed, Mayor Gallego said, “Phoenix has already placed orders for hybrid-electric buses thanks to the incentives and received a $15 million grant for expanding its EV charging network and addressing the city’s air quality problems. The city is trying to find out if that funding will still be available as city leaders work on the budget for the upcoming fiscal year.”
Gallego later posted on social media:
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