Southern Arizona Endodontics Dental Assistant General A1 Communications Cable Techs Trades/Construction RANCHO RESORT MAINTANANCE POSITION Health Care Sierra Tucson Eating Disorders Program Coordinator OpinionSolar manufacturing incentives deserve OKTucson, Arizona | Published: 06.26.2008
In the waning days of the state's fiscal year, the House and Senate are scurrying around with their proposals hoping to develop a budget the governor will sign. Amid the budget wrangling, we hope the solar jobs program makes the final cut.
A tax incentive package is aimed at attracting solar energy headquarters and manufacturing projects to Arizona. The twofold plan includes a state income-tax credit based on total capital investment (the company would receive a state income-tax credit equal to 10 percent of the total capital investment); and projects making a capital investment of at least $25 million would be eligible for a reduction in real and personal property taxes.
Doling out tax incentives during tough economic times when the Legislature is slashing the budget to meet a huge deficit may not seem prudent, but it is an investment.
According to Arizona Corporation Commissioner Kris Mayes, a Republican, the incentive package would help make Arizona competitive with states such as Oregon that are aggressively recruiting coveted solar industry jobs.
Arizona is poised to be a leading solar powerhouse: We all know there's plenty of sunshine. And the University of Arizona and Arizona State University provide the intellectual and research foundation to support the industry.
Ours is a solar-friendly state, with a residential solar tax credit, the Renewable Energy Standard (15 percent of our state's energy production should come from renewable sources by 2025) and "net metering" (compensation given to ratepayers with renewable-energy systems — mainly grid-connected solar-electric panels — when they generate more energy than they use).
"This is the fourth leg of the solar energy table," Mayes said Tuesday.
She also said that new solar jobs could help diversify Arizona's construction-industry-dependent economy.
"This is a start to moving away from our addiction to the construction industry," she said. Written materials supporting the measure state that the solar-technology industry is projected to grow to 62,000 jobs nationwide by 2015.
It could help stop the state's "brain drain." In the last 10 years, Arizona has lost about 48,000 semiconductor and manufacturing jobs, according to press materials from the Greater Phoenix Economic Council.
Attracting solar technology opportunities means jobs for these former "chip makers," said Barry Broome, president and CEO of the council.
The quality of the jobs at which these incentives are aimed is impressive. To qualify for the incentives, a project must pay 80 percent of the premium for employees' health-care coverage and the average salary must be at least 150 percent of the median state wage.
Many states are aggressively going after solar manufacturers, Mayes said. We can't wait and be left behind — companies are making their location decisions now.
If Arizona is going to successfully compete for these first-generation solar manufacturing jobs, our state must make itself competitive.
Broome said state leaders talk about wanting to create a "knowledge-based economy." This is an opportunity to make that a reality.
The Legislature should make the investment in this industry and make the solar tax credit package part of Arizona's budget plan.
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