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Will Congress pull the plug on Ohio’s clean energy momentum? • Ohio Capital Journal [1]

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Date: 2025-07-01

Part of the Inflation Reduction Act’s success in spurring clean energy investments stems from its 10-year time frame for tax credits, noted Joe Flarida, executive director of Power a Clean Future Ohio, which works with local governments on clean energy. That signaled to businesses and communities that there would be some stability, which is important for business planning.

“What we saw was this massive movement and response to use and leverage those tax credits in a productive way,” Flarida said. Pulling the rug out from under organizations that planned or broke ground on projects expecting those tax credits ​“is going to be a wasteful-government-spending dilemma,” he continued. ​“What we’re going to see is a ton of investment that’s taken place over the past couple of years completely vanish overnight. And this is just bad policymaking.”

The Ohio Chamber of Commerce would like the Inflation Reduction Act’s tax credits to continue through 2035, said Tony Long, the organization’s general counsel and director of energy policy. The state needs more energy generation, he added, noting that Ohio imports about a quarter of its electricity from other states.

“These credits will help continue to drive new development of energy sources,” Long said, noting that IRA tax credits have helped small and medium-sized businesses grow.

Private businesses won’t be the only ones impacted if Congress cuts or severely curtails the clean energy credits. ​“Direct-pay” provisions allow local governments and schools to access incentives after completing qualifying projects. Cities and counties in Ohio are already counting on more than $160 million in savings from those credits, 30 local government leaders told the state’s congressional delegation this spring.

Consumers also can expect higher electricity prices in the absence of clean energy credits, since less incentive to build new power plants means less energy in the marketplace. Full repeal of the tax credits could cost U.S. households an average of more than $110 per year, and businesses could expect a 10% increase in electricity costs, the Clean Energy Buyers Association estimated in February.

Debates continue on the federal reconciliation bill, which Republicans aim to pass in July. Impacts on businesses, workers, and communities will depend on the final provisions.

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[1] Url: https://ohiocapitaljournal.com/2025/07/01/will-congress-pull-the-plug-on-ohios-clean-energy-momentum/

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