Why is Arizona’s desert air conditioner tax break not enough to fix the state’s grid crisis
By Matt Waldman August 30, 2018 12:00pmThe tax break for electric car companies is worth more than $4 billion and would be the first such giveaway since a 2009 program that helped turn the state into a regional power producer.
The tax credit is expected to cost Arizona $2.4 billion over the next five years, according to state budget projections that show the state will spend $2 billion on electric vehicles over that time period.
The money is expected in the form of rebates for customers who lease or purchase electric vehicles, and it is expected the incentives will cover some costs of installing solar panels and other renewable energy systems in the state.
However, the tax break has been criticized by many as not enough, particularly in light of a shortage of clean energy that has driven the state to a $19.8 billion deficit in 2018.
The incentive program, known as the Clean Air Fund, was created in 2013 and provides tax credits for electric vehicles.
It was designed to spur innovation, spur economic development and help create jobs.
The state was able to take advantage of the tax breaks after years of planning and a combination of public and private investment.
The $4.5 billion in credits for the electric vehicle industry, and $2 million in rebates, is expected over five years to cover $2 to 3 billion of the costs of building new electric vehicle infrastructure.
In 2017, the state received $2,400 per vehicle in rebated incentives, according the Department of Economic Development and Technology.
The incentives have been criticized as not providing enough incentives to spur investment and jobs in the region.
The Arizona Department of Transportation estimated the incentives alone could bring in up to 200,000 jobs and generate $40 billion in economic activity, though the incentives are set to expire in 2026.
“The incentives are important for the incentive program because it’s important to the region that we have a diversified economy and jobs, but the incentives themselves are not the solution to the problem of Arizona’s grid,” said John G. Reitz, the chief executive of Arizona Power, the utility that manages the Clean Energy Fund.
“The incentives aren’t enough to get us to that point.”
In the first five years of the program, Arizona received $1.1 billion in rebatements and a $1 billion credit for renewable energy, according Arizona Power.
The rebate program is one of the largest in the nation, and Arizona’s economy has been on a strong footing as a result.
It is projected to generate more than 13,000 new jobs and create nearly $300 million in economic impact.
The department has already announced $1 million in incentives for solar installations and another $1,500 for renewable power.
The money will go to offset the cost of new power lines, which the department says is essential to keep the state competitive in a competitive market.
Arizona’s Clean Energy Program, which was created with the help of the Clean Electricity Act, was originally approved in 2007 and funded by an initiative of then-President George W. Bush.
It provided a tax credit of $200 per year for electric vehicle owners and $50 for electric hybrid and electric-drive vehicles.
The bill passed the Arizona House of Representatives and the Arizona Senate in 2017.
The legislation was then sent to Gov.
Doug Ducey, who approved it.
The governor has said he wants to expand the Clean Power Plan and boost energy efficiency.
The governor signed the legislation into law in February 2018.
In 2018, the Clean Action Plan, which is designed to cut greenhouse gas emissions, has led to more than 1.3 million jobs in Arizona, according an analysis by the American Council for an Energy-Efficient Economy.
Arizona is also the first state to increase energy efficiency standards in 25 years.
“We have a lot of infrastructure that needs to be upgraded,” said Mike Phelan, the CEO of Arizona Electric Power, a utility that is part of the group that oversees the Clean Fuel Tax Credit.
“We have to start upgrading to make sure that our electrical system is more energy efficient and sustainable.”
But the Clean Clean Air Plan has also been criticized for being overly optimistic.
“I don’t think we’re in a place where we can say we’re going to get to zero emissions in five years,” Reitz said.
The Clean Energy Finance Corporation, which operates the rebate program, has said that the incentives would provide enough money to keep Arizona from becoming an outlier.
“If you look at Arizona, we have some of the best solar, wind, geothermal and other clean energy technologies in the world,” said Bob McBride, the executive director of the Colorado-based Clean Energy Economy.
“It is a real example of how the Clean Fuels Act is helping to create jobs.”