Earlier this month Senator Murkowski, alongside three Republican colleagues in the Senate, put forward a letter to Majority Leader Thune in support of energy tax credits. These credits are currently on the chopping block as we move into a tumultuous budgeting season where the new presidential administration has threatened any and all provisions for clean energy. 

Many of these tax benefits were originally written into the Inflation Reduction Act (IRA) – a federal law aimed at investing in clean energy among other critical infrastructure needs across the country. Despite a judge’s recent ruling to release frozen funding from the IRA and Bipartisan Infrastructure Law, the future of these tax provisions remains uncertain.

The Senate letter states, “The United States produces some of the cleanest and most efficient energy in the world, and an all-of-the-above approach—including support for traditional and renewable energy sources—has long been a hallmark of our energy strategy.” Alaska is home to rich renewable energy resources, yet falls behind most states in terms of the infrastructure development needed to harness ample sun and wind power, among others. Tax credits would help expedite our ability to unleash these forms of energy.

The authors of the letter go on to say that a predictable tax framework is critical for the future of many infrastructure projects and private-sector investments. Over the last several years, developers have broken ground on new energy ventures with these tax credits – and cost savings – in mind. Now they face financial uncertainty.

This letter comes on the heels of a similar effort in the House, where 21 House republicans, led by Rep. Andrew Garbarino (R-N.Y.), wrote to the Chair of the Ways & Means committee in support of protecting energy tax credits.

As noted in the House letter, energy tax credits have a direct benefit to ratepayers. Eliminating tax credits would immediately raise bills for many Alaskans. Markedly missing from letters on both the Senate and House sides are signatures from Alaska’s two remaining representatives: Senator Dan Sullivan (202-224-3004) and Representative Nick Begich III (202-225-5765). 

The economic benefits of clean energy investments – often spurred by incentives like tax credits – go far beyond lowering utility bills. In a recent study commissioned by The Nature Conservancy, BW Research found that for every federal dollar invested in tax credits we can expect to see a return on investment of $1.33. This is the equivalent of $32.5 billion dollars in overall economic value added to the U.S. economy each year. Much of this is driven by job growth in clean energy industries. 

Growth in our renewable energy sector holds many other benefits apart from economic gains. Tax incentives spur technologies that make our grids more efficient and reliable, and help many of our communities move away from expensive diesel fuel. This is especially crucial as energy demand is on the rise. Clean energy also benefits our air and water, which ultimately impacts our health and the health of our fish and game.

At The Alaska Center, we are extremely grateful for Senator Murkowski’s leadership, and encourage our other Representatives to speak up in favor of affordable energy and private investment in Alaska. Creating jobs that benefit our environment makes common sense – sign up to volunteer with The Alaska Center and join us in this fight.