US clean energy sector hit by $14 billion in cancellations as Congress eyes tax hike

More than $14 billion in clean energy investments and over 10,000 new jobs were cancelled or delayed in the United States in the first five months of 2025, amid growing political uncertainty over the future of federal clean energy tax credits. The findings were released by investors E2 (Environmental Entrepreneurs), based on data from its Clean Economy Tracker.

April alone saw the cancellation of $4.5 billion worth of clean energy projects, including those in electric vehicles, batteries and wind energy, as the US House of Representatives passed the controversial One Big Beautiful Bill Act. The legislation, if enacted, would significantly scale back tax incentives for clean energy businesses.

E2 also tracked an additional $1.5 billion in cancelled projects from earlier this year that had not previously been recorded. In total, 45 clean energy projects have been cancelled, downsized or closed since August 2022, with the loss of nearly 20,000 planned jobs and $16.7 billion in investment.

E2 has called on lawmakers to reconsider the bill and protect what it describes as a vital and fast-growing sector of the American economy.

The proposed legislation was already having a chilling effect on manufacturing and infrastructure development, warned Michael Timberlake, E2’s communications director. “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 US manufacturing and jobs,” he said in a statement.

“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 and that’s driving unprecedented economic growth in every part of the country.”

Congressional districts represented by Republicans, who had largely benefitted from clean energy incentives under the 2022 legislation, saw the most project cancellations, the report noted. Over $12 billion in investments and 13,000 jobs were scrapped in Republican districts alone.

Despite the uncertainty, some new investments continued. E2 tracked $486 million in clean energy announcements in April, including a $400 million solar wafer factory expansion by Corning in Michigan, which could create at least 400 jobs. A Canadian firm also pledged $9.3 million for a new solar equipment plant in North Carolina.

If completed, the seven new projects announced in April would together create nearly 3,000 permanent jobs across six states. These additions bring the total number of tracked clean energy projects to 390, spanning 42 states and Puerto Rico, with cumulative planned investments nearing $132 billion.

However, the future of many of these projects remains uncertain as the Senate prepares to debate the tax package.