U.S.-based companies have delayed or cancelled more than $14 billion in clean energy and clean vehicle investments since January, raising concerns over policy uncertainty as Congress considers legislation that could significantly alter federal tax credits for the sector, according to a new report from the business-focused group E2.
The analysis, based on data from E2 and its Clean Economy Tracker, highlights a steep downturn in planned development. In April alone, companies pulled back $4.5 billion in projects related to batteries, electric vehicles, and wind energy, in anticipation of the House’s passage of a sweeping tax and spending bill known as the “One Big Beautiful Bill Act.”
An additional $1.5 billion in previously unreported cancellations from earlier months were also identified in E2’s latest findings.
The analysis notes that more than 10,000 new jobs linked to clean energy projects have been withdrawn in recent months. “Now is not the time to raise taxes on clean energy and compound the business uncertainty that is clearly taking a greater and greater toll on U.S. manufacturing and jobs,” said Michael Timberlake, E2’s communications director.
“If the tax plan passed by the House last week becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are cancelled,” Timberlake added. “Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America’s growing energy demand.”
Notably, the report shows Republican-held congressional districts—which have received the largest share of clean energy investment since the passage of the Inflation Reduction Act in 2022—are being hit hardest. More than $12 billion in investments and over 13,000 jobs have been scrapped in those districts alone.
Through April, 61% of all announced clean energy projects, 72% of associated jobs, and 82% of total investment were located in Republican-led districts, E2’s data shows.
Despite the setbacks, some companies are continuing to expand. In April, nearly $500 million in new clean energy investments were announced across six states. These include a $400 million expansion by Corning of its solar wafer factory in Michigan, which is projected to add 400 jobs, and a $9.3 million investment by a Canadian solar manufacturer to open a plant in North Carolina.
In total, seven new projects announced in April are expected to generate nearly 3,000 permanent jobs, if completed.
To date, E2 has tracked 390 major clean energy projects across 42 states and Puerto Rico, representing planned investments of nearly $132 billion and over 123,000 new permanent jobs. However, since August 2022, when the current tax credits were enacted, 45 projects have been cancelled, closed, or scaled down, amounting to a loss of 20,000 jobs and $16.7 billion in investment.
The future of clean energy growth, industry groups say, now rests on the outcome of Congressional deliberations over the proposed tax policy changes.
