Report says more than 25K Michigan jobs threatened if IRA tax credits are canceled
Since former President Joe Biden launched billions in grants, loans, tax breaks and other efforts incentivizing clean energy development through the Inflation Reduction Act, or IRA, Michigan has proven itself as a leader in the sector. However, a recent report warns that President Donald Trump's efforts to eliminate those policies are already cutting into the state's clean energy gains.
Climate Power, a strategic communications firm centered on climate progress, has issued several reports tracking the impacts of Biden's climate policies across the U.S., repeatedly pointing to Michigan as the state attracting the largest share of clean energy projects, in addition to drawing significant investments and creating thousands of jobs.
However, in the months since Trump has taken office, the president's attacks on clean energy policy alongside the impact of his tariff policies have threatened, delayed or outright canceled $14.2 billion in investments alongside 2,667 jobs, the firm's latest report said.
If congressional Republicans repeal the IRA's tax credits for clean energy manufacturing, Climate Power warns that $39.85 billion in investments and 25,357 jobs could be lost.
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The report also emphasizes that these cuts would harm low-income communities, where companies have announced $13.3 billion in investments, creating 17,245 clean energy jobs. Additionally projects announced in rural communities which are expected to bring $5.8 billion in investment and 2,886 jobs could also be placed at risk.
While Climate Power has projected that the state will bring in 167,000 new jobs over the next ten years, the loss of federal support and impacts of Trump's trade war would similarly jeopardize these gains.
'Trump's war on clean energy and his chaotic policies have already caused a hemorrhaging of manufacturing jobs in sectors that had been booming for two years,' Lori Lodes, Climate Power's executive director said in a statement. 'Repealing clean energy investments would jeopardize hundreds of thousands of good-paying jobs on its own. On top of this crisis of uncertainty, repeal would devastate American manufacturing — halting construction, sending jobs overseas, hiking energy costs, and forfeiting the future to China and our other competitors.'
Of the 74 clean energy projects committed to investing in Michigan, the majority are centered in electric vehicles and batteries, with 35 projects centered on EV manufacturing and 19 on batteries. These sectors were also the largest for jobs, with the battery industry accounting for 46.9% of incoming jobs, while the electric vehicles sector accounts for 32.6%. However, the clean technology sector has drawn the greatest amount of investments, bringing $13.2 billion into the state.
The report also points to several projects in these sectors, including a $1.6 billion battery cell plant in Van Buren Township from Michigan-based Our Next Energy, and General Motors' plan to retool its Lansing Grand River Plant for electric vehicle production using a $500 million clean energy grant.
Climate power also noted that more than a third of the clean energy projects coming into Michigan would be housed in districts represented by Republicans in Congress, for a total of $12.5 billion in investments.
As Republicans work to cut spendings in order to extend Trump's 2017 tax policy, some House Republicans have spoken out against eliminating the clean energy tax credit, including Rep. John James (R-Shelby Twp.) whose district expects to see 275 new jobs and over $16 million in investments.
According to a report from Politico, Rep. Bill Huizenga (R-Zeeland) signed onto a letter Thursday calling for House Ways and Means Chair Jason Smith (R-Mo.) to maintain incentives for nuclear energy.
Huizenga's district houses the Palisades Nuclear Plant in Covert, which has approval for a $1.52 billion loan from the federal government to restart the plant.
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