Breaking Down H.R. 1 And Its Impacts On Arizona’s Clean Energy Economy
H.R.1, Congress’ 2025 budget reconciliation bill, is a whopping 330 pages long. After months of debate, Congress passed it on July 3rd and President Trump signed it into law on July 4th. But what exactly does that mean for Arizona’s tech businesses, and technology ecosystem, that are on the front lines of our state’s booming clean energy industry?
Let’s dive in.
Outlook on Arizona’s Clean Energy Economy
| 2022-2025 | 2026+ Expected Before H.R. 1 | 2026 Expected After H.R. 1 | |
| Jobs | 18,703 Created (Source) |
5% Growth (Source) |
100,000+ likely lost (Source) |
| Investments | $13.2 billion (Source) |
$58 billion (Source) |
$0 (Source) |
The Stories Behind the Numbers
Arizona rocketed up to 10th in the nation for clean energy investments after the passage and signing of the Inflation Reduction Act (IRA) in 2022. However, the recent federal budget rescinds nearly all of the IRA’s clean energy tax credits and investments. Electric vehicle tax credits will now end on September 30, 2025. Solar panel, energy efficiency upgrades and other clean energy tax credits will all expire when the clock rings in 2026. The impacts on consumer demand and investments in Arizona’s clean energy sector will be enormous.
However, clean energy manufacturing will be hit the hardest in this political see-saw. The IRA’s Advanced Manufacturing and Advanced Energy Project Credits propelled Arizona into the nation’s battery manufacturing leader. In fact, before 2017, Arizona had no reported battery storage capacity, and by 2023 it was 3rd in the country. In April 2025, when the new Administration’s goals around clean energy became more apparent, spending around manufacturing had already started to slow.
Nationwide, H.R. 1 has resulted in 80,501 jobs lost, $42.59 billion in lost or delayed private investment and 138 projects canceled, delayed or laying off staff. Arizona currently ranks #3 in the nation of state with the most clean energy jobs lost.
Contributing to these losses was the cancellation of five major projects across Arizona.
Steven G. Zylstra, President & CEO, Arizona Tech Council, recently joined “Arizona Horizon” to share more about the potential impact this may have on Arizona.
Some of our members impacted by H.R. 1:
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While the Administration has decided to challenge the growth of renewable energy development, Arevon is proud to call Arizona home and knows our state will continue to be a national leader in generating homegrown, affordable energy. Renewable energy, especially solar as well as battery storage, remains essential for meeting growing electricity demand, including that from data centers and AI infrastructure. The creation of challenging policies will result in added hurdles, price increases and will create some uncertainty on power supply sources, but it will not derail the long-term value of renewable energy or Arevon’s position as an industry leader.
Arizona Technology Council Advocacy
In April 2025, the Arizona Technology Council (AZTC) returned to Capitol Hill for its annual DC Fly-In, a powerful opportunity to represent Arizona’s thriving innovation ecosystem and advocate for federal policies that support the state’s science and technology sectors. This year’s trip was critical ahead of the July 2025 vote on H.R. 1.
The highlight of the trip was a full day of meetings with teams representing nine members of Arizona’s congressional delegation to champion the interests of our state’s technology, science and innovation communities.
In each meeting, Steve shared the Council’s 2025 Policy Agenda, urging action on key federal priorities, including:
- Restoring Full R&D Expensing
- Protecting Clean Energy Tax Credits
While the Council was disappointed by H.R. 1’s cuts to clean energy tax credits, we did join the Technology Councils of North America (TECNA) in strongly supporting the R&D provisions included in the final package.
Learn More about the Council’s Public Policy Advocacy
How the Arizona Technology Council Drives Clean Energy Efforts with You:
From clean technology to electric vehicle infrastructure, battery manufacturing to renewable energy, the Arizona Technology Council is leading the charge. By becoming a member, you can champion these efforts and more—taking an active role in advocating for Arizona’s tech ecosystem.
Support Arizona’s economic future.
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