The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
The Inflation Reduction Act (IRA) is more than just a clean energy policy—it’s a catalyst for economic growth in Wisconsin. With a decade of stability in funding for solar tax credits and incentives in Wisconsin, businesses like Northwind Solar have been able to confidently invest in employees and infrastructure for solar projects. However, this progress is at risk due to pressure at the federal level to stop funding for clean energy and solar initiatives that create jobs for Wisconsin communities.
The IRA extended the 30% Residential Clean Energy Credit through 2032, ensuring homeowners can affordably invest in solar. Similarly, small businesses depend on the 30% Investment Tax Credit (ITC) to plan expansions, hire employees, and lower project costs. Reducing or shortening these incentives would disrupt investment and slow Wisconsin’s transition to clean energy.
Historically excluded from solar tax credits, municipalities and nonprofits now benefit from the IRA’s direct pay option, allowing them to receive the equivalent of a tax credit as cash. Because of funding from the IRA, solar installations are feasible for schools, public buildings, and nonprofits to lower long-term energy costs. Rolling back these clean-energy incentives would force public institutions to rely on fossil fuels, increasing operating expenses and stalling sustainability efforts.
The IRA fuels workforce expansion for Wisconsin. At Northwind Solar, we hire and invest in business growth when we think the market will be stable. Nationally, the IRA is expected to generate hundreds of thousands of clean energy jobs. Repealing or reducing these credits would shrink the industry, leading to job losses and economic stagnation.
To lead in clean energy, Wisconsin needs consistent policies for planning our economic future. Short-term, stop-and-go tax incentives discourage investment and innovation. Maintaining the IRA’s provisions will ensure sustained economic growth, job creation, and a robust solar market. Instead of weakening these incentives, lawmakers should commit to their long-term stability, ensuring Wisconsin businesses, homeowners, and public institutions thrive in the clean energy transition.
– Stolzenburg is founder of Northwind Solar.
