Maricopa, state hope bill will attract solar industry firms

Going into a gunfight without a gun is how Maricopa City Manager Kevin Evans describes Arizona’s ability to compete with other states in attracting companies in the solar energy industry.

However, Evans may soon have the six-shooter he desires.

Several community, business and state leaders gathered on Friday at Global Water Center for a forum on solar energy, its future in Maricopa and a bill aimed at attracting solar component manufacturing companies to Arizona.

Senate Bill 1403 would enable the state to hand out tax breaks to solar industry firms that move to Arizona.

“With the state the budget is in, it may be difficult to get this bill passed but we are going to try,” said Sen. Rebecca Rios, District 23.

Specifically, the bill offers a state income tax credit equal up to 10 percent of a company’s total capital investment. In order to qualify for the break, the company would have to pay employees a minimum of 125 percent of the average state wage and provide a minimum of 80 percent of employees’ benefits packages.

“While these breaks may cost the state some tax revenue up front, it will be a net gain in the end,” Rios said.

Chris Camacho, a solar industry expert with the Greater Phoenix Economic Council, stated that if a solar manufacturing plant that came to the state created 400 direct jobs, it would also create 800 indirect jobs and in total benefit Arizona to the tune of $78.6 million in revenue in 10 years.

Camacho added attracting these types of employers to Arizona is vital because the solar industry is one of the largest creators of new jobs in the nation.

“Green jobs are the jobs of the new age,” he said.

In his presentation, Camacho cited numbers from a Department of Economic Security study that predicted 400,000 jobs would be created in the solar sector in the next 10 years. However, the study stated that only 5 percent of those jobs would land in Arizona.

“It is my job to make sure Maricopa and the cities (the economic council) represents gets a larger portion than 5 percent of those jobs,” Camacho said.

In trying to land solar energy jobs, Arizona is in competition with California, Texas, Nevada, New Mexico, and Oregon.

Camacho said that of these states, Arizona is the least competitive. “We have tons of companies that tell us they would love to locate in Arizona but that it does not make sense financially because of a lack of incentives.”

Evans agreed with Camacho saying that when he was a city manager in Huntsville, Texas, the city used to love competing against Arizona for solar industry companies.

“They (Arizona) couldn’t match anything we were able to offer in incentives,” Evans said.

However, that does not mean that Arizona is not without its perks when it comes to attracting the solar industry. Camacho said that the state’s workforce translates well to the solar industry and Arizona is centrally located to export products to other states that have a high solar demand.

He also said Arizona State University is considered one of the top research universities in the solar field and has one of two labs in the nation that can certify solar modules – solar cells grouped together to form a solar panel. “It is a big perk to companies to be located near and be able to work with a research leader like ASU,” he said.

In addition to passing the bill, Camacho said it’s important to have “shovel-ready” sites to attract solar component manufacturing companies.

“These companies want to come in and immediately begin construction and not have to worry about doing all the infrastructure work,” he said.

Evans said that Maricopa is working currently on preparing sites so that it can be ultra-competitive in attracting companies and that the city has already had two inquires in the past few months from solar energy companies.

While the bill targets the companies that produce parts and supplies for solar plants Camacho said state and city leaders need to continue recruiting the plants themselves as well.

“The plants don’t create enough jobs to qualify for the tax breaks, but they do increase the demand for solar components in the state and that will help in attracting the larger manufacturing companies,” Camacho said.

Photo by Michael K. Rich