Cuts to tax credits will impact Iowans

Iowa gets about 60% of its energy from wind, solar, and other renewable energy, the largest share in the country. Renewable energy is (or was) one of the biggest growth sectors of the US economy.

Despite Iowa leading the way in renewable energy projects, Iowa Republicans Mariannette Miller-Meeks, Ashley Hinson, Zach Nunn and Randy Feenstra, voted to end clean energy initiatives.

Meanwhile, the US spends over $20 billion a year on fossil fuel subsidies. Sparing those subsidies was no accident.

Representative Mariannette Miller-Meeks repeatedly advocated for keeping the Inflation Reduction Act’s energy tax credits, pointing out the jobs they created and investments made by companies while warning that repealing the tax credits would undermine private investment and halt ongoing development.

Yet, she voted for the budget bill that got rid of them. Is it more important to give tax breaks to billionaires than to grow our clean energy industry and keep electricity prices from skyrocketing?

Up to $238 million in economic activity in Iowa is threatened, according to a recent Iowa News Now article. Cutting the clean energy tax credits, created by the Inflation Reduction Act in 2022, could result in the loss of 14,000 jobs in Iowa over the next decade.

Iowa was 49th in economic growth in 2024, and 2025 is not looking any better. According to the Bureau of Economic Analysis, Iowa’s and Nebraska’s GDP tied for worst in the nation, shrinking by over 6% in the first quarter of 2025, largely due to a downturn in the agricultural sector, thanks in part to the Trump Tariffs.

Add the elimination of clean energy tax credits to these dismal figures and Iowa is looking at an uncertain economic future. All of this is going to have a negative effect on worker incomes.

Iowa was already ranked 48th in personal income growth in 2024. How is this good news for recent high school and college graduates looking for good paying jobs in Iowa?

Fossil fuel costs are expected to rise because of increased demand and less competition from wind and solar. Remember, fossil fuel is traded on global markets so no matter how much we extract here at home, prices are determined by the markets. We have more control over wind and solar.

Alliant Energy warned that repealing clean energy tax credits could push monthly electricity rates 15% higher.

Get ready for higher electricity and gas prices. They are coming, and they are made possible by Iowa Republicans who voted to get rid of the clean energy tax credits.

Becky Birch

Marengo