Ohio Mayors Highlight How Clean Energy Tax Credits Are Boosting Local Economies

On Tuesday, May 13, 2025, three Ohio mayors convened a press call to highlight the critical role of clean energy tax credits made available through the 'Direct Pay' provision of the Inflation Reduction Act (IRA). This landmark provision empowers local governments and tax-exempt organizations to claim tax credits for clean energy projects, marking a significant shift in how municipalities can access funding for sustainable initiatives.

These clean energy tax credits are boosting local projects, lowering energy costs for local governments and working people, and creating good-paying jobs. Additionally, clean energy projects supported by direct pay have stimulated over $10 billion in investments in Ohio, generating more than 14,300 new, well-paying jobs.

This call was hosted as the House Ways and Means Committee marked up its draft tax bill, which proposed spending cuts that would harm local economies and increase energy prices. These cuts would raise costs for American families by more than $110 annually, or up to 12% in the Midwest, which represents the highest regional increase in the nation, beginning next year. Conversely, if clean energy tax credits stay in place, Americans stand to save up to $38 billion on electricity bills by 2030.

“When we're talking about the Inflation Reduction Act, we're talking about investments in America. We're talking about investments in communities,” said Mayor Steve Patterson of Athens, OH, and President of the National League of Cities. “At the end of the day, I can't stress this enough – this is investing in America. This is investing in our local municipalities, where we (mayors) know where the rubber hits the road and what needs to be done in order to keep ourselves as efficient as possible and stewards of taxpayer dollars.”

Mayor Sharetta Smith of Lima discussed the city's innovative 2 MW floating solar array, which exemplifies how local governments can harness clean energy solutions to enhance sustainability while also providing economic benefits to the community. "The Inflation Reduction Act, specifically the direct pay provision, has allowed the city of Lima to pursue what I think is a very forward thinking and innovative project... This project would not be feasible without the clean energy tax credits, and it is going to allow us to save our own utility costs here at the city of Lima.”

Mayor Edward Kraus of Solon also expressed support for the Direct Pay provision, highlighting its potential to stimulate local investment, job creation, and collaboration, “I think that’s the approach a lot of municipalities have to have because you have to have these partnerships in order to achieve results for your community.”

Power a Clean Future Ohio Executive Director Joe Flarida concluded the call by underscoring the importance of preserving federal clean energy tax credits, “They are critical economic tools within our tax code that help us build the economies of the future nationwide…We hope Congress will be responsive to what we are hearing and seeing on the day-to-day here in Ohio and preserve these tax credits and the direct pay provision.”