What They’re Thinking: Nonprofit working to keep clean energy tax credits in Iowa

Amber Markham has served as director of external affairs for the Nature Conservancy’s Des Moines office since 2018, but she’s worked in government relations for the last two decades. Since joining the Nature Conservancy — an international organization that advocates for land conservation, habitat diversity and clean water and air — she has been focusing on expanding clean energy and boosting water quality in Iowa.

Since President Donald Trump has come back into office, Markham has been fighting to keep clean energy tax credits — a Biden administration era policy under the Inflation Reduction Act passed by Congress in 2022 — available for all Iowans.

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The tax credits are meant to incentivize homeowners and companies to opt for clean energy alternatives by providing a 30 percent tax credit for investments in rooftop solar, wind energy, geothermal heat pumps and battery storage.

Q: Why is keeping these clean energy tax credits important for Iowa?

A: Adding renewable energy to the mix alongside traditional sources of power makes electricity more reliable, accessible and cheaper, and renewable energy also creates jobs. In 2022, the government extended the bipartisan clean energy tax credits. They provided financial incentives for people and businesses to support and develop clean energy. These tax credits spurred a massive growth of clean energy across the country and created new jobs in construction, manufacturing, transportation and energy generation. I would say that these tax credits, although they were extended as part of the Inflation Reduction Act, initially started off as a bipartisan effort.

Sen. Chuck Grassley was a leader in wind energy and in 1993 he led the wind energy production tax credit. It's interesting right now because the clean energy tax credits were part of the Inflation Reduction Act, they're kind of considered more of a partisan issue, and so we feel a little bit like they're being targeted. These federal investments are at risk right now because Congress is currently debating the country's budget, and in this process, they are talking about potentially repealing these tax credits.

Q: How is the work the Nature Conservancy doing supporting this effort?

A: The Nature Conservancy is a big supporter of the clean energy tax credits. We commissioned a study to be done by BW research to just determine what the economic impact of these clean energy tax credits would be in Iowa. Some of the clean energy tax credit highlights are that they would support more than 2,300 jobs in Iowa. They add nearly $238 million to the Iowa economy. They provide a return of $1.44 for each federal dollar invested in Iowa and they generate over $116 million in household income annually for Iowa.

If these tax credits disappear, it’s estimated by 2026 that the national average residential electric cost would increase by 7 percent and the business cost would increase by 10 percent. These benefits are at risk, and we really need Congress to step up now and stand up for these tax credits. There have been some Republican representatives, including Rep. Mariannette Miller-Meeks, who have signed a letter in support of the tax credits. But we need them and her to stand firm, and we need more of our congressional delegation to stand up and support them as well.

Q: What makes this moment unique for these energy tax credits?

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A: You know, it was part of the Inflation Reduction Act, which is a Biden era thing, and so some are saying “let's just do away with all of them,” whereas others are saying “no.” Some people want a more skillful approach to figuring out which ones need to be scaled back, rather than just a sledgehammer and removing them all. Like I said, Rep. Miller-Meeks, who is chair of the Conservative Climate Caucus, has stepped up as one of the few Republicans saying, “let's not do away with all these. These are really important to Iowa.”

Q: Aside from the environmental impacts, how could Iowa’s workforce be affected if these credits go away?

A: If these tax credits go away, people are less likely to make an investment in solar or other clean energy pathways. And if you think of all the tradespeople that have jobs installing solar on rooftops or building wind turbines, those tradespeople could lose their jobs. There's a whole ripple effect that happens, not just in the direct implications of not installing solar on your roof. Especially in rural Iowa, there aren't a lot of economic opportunities, so these can create good jobs and help reinvest money in the local economy.

Olivia Cohen covers energy and environment for The Gazette and is a corps member with Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues.

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Comments: olivia.cohen@thegazette.com