Congress: Keep Clean energy tax credits

As Tax Day looms, Johnny Cash’s 1978 song“After Taxes” might strike a chord with many Americans. After seeing his tax bill, Cash laments the things he won’t be able to afford because of what he owes Uncle Sam:“ that new fence for my farm … that brand new Pontiac.” Instead, the money left over will cover“beer and stew” with“just enough for gas.”

Perhaps someone in Congress was listening, because 1978 was also the year the federal government enacted the Investment Tax Credit (ITC) to help defray the costs of large-scale solar or wind energy projects. Today, Iowa produces enough wind energy to power the equivalent of 3,879,969 U.S. households, and enough solar energy for another 84,378. Under current legislation, when everyday Iowans do their taxes, they can get back up to 30% of the cost of installing solar panels, heat pumps or other energy efficiency upgrades in the form of a tax credit.

Choosing clean energy makes a lot of sense. The less energy you use, the more you save. And, power from the sun doesn’t pollute our air, never runs out and shows up for free, so why not use it?

Unfortunately, many members of Congress are currently working to take away clean energy tax credits from Americans, which is especially absurd given the hundreds of billions of taxpayer dollars used to subsidize fossil fuels and other pollution.

Although clean technologies can pay for themselves over time through utility bill savings, upfront costs remain a barrier. Rooftop solar can cost upwards of $20,000, a storage battery runs between $8,500 and $10,000, and highly efficient electric appliances such as heat pumps can be a few thousand dollars more than less efficient gas models. For example, in Iowa, a 7kw home solar installation will currently cost $21,954, but after the federal tax credit is applied that comes down to$15,479.

That’s why tax credits are so important. In 2023, nearly 33,000 Iowa families used these credits for clean energy home improvements, saving more than $58 million dollars on their taxes. In exchange, all of us get cleaner air and a healthier environment.

Maintaining these tax credits helps not just people across the country choose clean, efficient energy but schools, hospitals and houses of worship too. Notre Dame High School and Great River Health are just two of the institutions in Iowa’s first district that have installed solar panels to care for creation and save money that can then support other aspects of their mission. Zion United Church of Christ turned on their new solar panels in November 2024, two years after the Inflation Reduction Act made solar incentives available to nonprofits including houses of worship. The 72 panels will provide all of the church’s electricity needs and shade the carport. More importantly, church members say they’re “our investment in the future.”

Members of Congress need to hear from their constituents who support these tax credits. Indeed, most Americans want to keep them. This helps explain why more than a dozen House Republicans signed a letter to Speaker Mike Johnson last August calling on him to maintain clean energy incentives. We applaud Rep. Marianette Miller-Meeks of Iowa’s 1st district, for joining them and for repeating the message in a new letter this March.

We’ve come a long way since 1978. Today, millions of Americans are powering their homes, farms, businesses and places of worship directly with the sun and wind, for a steadily declining cost. And an increasing number of us are driving the cleanest cars ever made.

Clean energy tax credits have helped people invest in projects that will benefit themselves and their families for the long-term. Congress has many pressing and important problems that deserve its attention -- repealing this successful program isn’t one of them.

Lisa Frank is executive director of Environment America, a national network of 30 state environmental groups.