$31 billion in economic losses would occur across 28 states, with 160,000 jobs lost, if federal technology-neutral energy credits are repealed

The Clean Energy Buyers Association (CEBA) today released additional analysis showing that if federal technology-neutral energy credits are repealed, the gross domestic product (GDP) across 28 states would decrease $31 billion and 160,000 jobs would be lost.

This new data for nine additional states builds on a previous study, Economic Impacts of Repealing Technology-Neutral Tax Credits, commissioned by CEBA and performed by NERA Economic Consulting, which was released last month. That report found that in 19 states, significant job losses, higher electricity and natural gas prices, and lower economic growth would occur if the technology-neutral federal investment (§48E) and the production energy credits (§45Y) are repealed.

“There is no question that removing tech-neutral energy credits would cause economic harm and job losses and drive up electricity prices in more than half the country,” said CEBA CEO Rich Powell. “Preserving these pro-growth energy credits is a fiscally responsible way for Congress to foster U.S. economic growth, attract private investment, expand domestic energy production, and lower costs for American families and businesses.”

Earlier this year, CEBA released a study by NERA Economic Consulting showing that repealing the federal clean energy technology-neutral investment (§48E) and production tax credits (§45Y) would raise average U.S. residential electricity prices by nearly 7% by 2026 — equating to an average yearly increase of more than $110 for American residential customers.

The analysis of the nine additional states released today found that if the federal tax credits were repealed:
• Texas would lose 10,200 jobs and experience a $5.6 billion decrease in state GDP.
• Idaho would experience a $1,920 average loss in annual household income and a $1.4 billion decrease in state GDP.
• Louisiana would experience an 11.3% increase in electricity prices for households and a 13.8% increase in electricity prices for businesses.

New State Findings:

Alaska:
• 600 fewer jobs
• $170 average loss in annual household income
• 0.8% increase in electricity prices for households
• 0.9% increase in electricity prices for businesses
• 2.5% increase in natural gas prices for households
• 4.3% increase in natural gas prices for businesses
• $50 million decrease in state GDP

Idaho:
• 1,470 fewer jobs
• $1,920 average loss in annual household income
• 6% increase in electricity prices for households
• 7.4% increase in electricity prices for businesses
• 4.2% increase in natural gas prices for households
• 6% increase in natural gas prices for businesses
• $1.4 billion decrease in state GDP

Indiana:
• 4,000 fewer jobs
• $190 average loss in annual household income
• 6.1% increase in electricity prices for households
• 7.5% increase in electricity prices for businesses
• 3.2% increase in natural gas prices for households
• 4.4% increase in natural gas prices for businesses
• $1.27 billion decrease in state GDP

Louisiana:
• 520 fewer jobs
• $530 average loss in annual household income
• 11.3% increase in electricity prices for households
• 13.8% increase in electricity prices for businesses
• 2.5% increase in natural gas prices for households
• 6.7% increase in natural gas prices for businesses
• $1.8 billion decrease in state GDP

Montana:
• 590 fewer jobs
• $170 average loss in annual household income
• 8% increase in electricity prices for households
• 9.3% increase in electricity prices for businesses
• 3.7% increase in natural gas prices for households
• 4.1% increase in natural gas prices for businesses
• $190 million decrease in state GDP

North Dakota:
• 810 fewer jobs
• $330 average loss in annual household income
• 6% increase in electricity prices for households
• 8.9% increase in electricity prices for businesses
• 3.3% increase in natural gas prices for households
• 6.4% increase in natural gas prices for businesses
• $380 million decrease in state GDP

South Dakota:
• 1,270 fewer jobs
• $170 average loss in annual household income
• 11.7% increase in electricity prices for households
• 14.6% increase in electricity prices for businesses
• 3.8% increase in natural gas prices for households
• 5.2% increase in natural gas prices for businesses
• $60 million decrease in state GDP

Texas:
• 10,200 fewer jobs
• $290 average loss in annual household income
• 3.9% increase in electricity prices for households
• 6.4% increase in electricity prices for businesses
• 1.8% increase in natural gas prices for households
• 7.3% increase in natural gas prices for businesses
• $5.6 billion decrease in state GDP

Utah:
• 1,250 fewer jobs
• $100 average loss in annual household income
• 4.2% increase in electricity prices for households
• 5% increase in electricity prices for businesses
• 3.5% increase in natural gas prices for households
• 4.8% increase in natural gas prices for businesses
• $280 million decrease in state GDP

The study released in May discussed the adverse economic impacts of repealing the technology-neutral energy credits and how, in the absence of other available technologies, gas generation would try to fill the gap and ultimately result in constrained generation availability and higher economy-wide energy costs. Elevated electricity and natural gas prices would create economic stress that would slow power sector growth, dampening new investment and further constraining energy supply.