More than $14 billion in clean energy projects have been canceled or delayed across the United States in 2025 alone, according to a new report by Environmental Entrepreneurs (E2), a nonpartisan business group that tracks environmental policy and economic development. These cancellations have cost over 10,000 new jobs in low-carbon energy and clean vehicle industries, with most of the losses occurring in Republican congressional districts—despite those regions being among the largest beneficiaries of clean energy investments since 2022.
The losses come amid growing fears over the future of federal clean energy policy and tax credits, especially as the U.S. Senate considers the massive tax and spending overhaul known as the One Big Beautiful Bill Act. The legislation, passed by the House of Representatives in April, would effectively dismantle clean energy tax credits established under the Inflation Reduction Act signed by former President Joe Biden in 2022.
“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, communications director at E2.
While the bill has not yet passed the Senate, its looming threat is already having real-world impacts. In April alone, $4.5 billion in electric vehicle, battery, and wind energy projects were canceled by companies bracing for the tax overhaul. An additional $1.5 billion in earlier cancellations brings the year’s total to over $14 billion.
“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 canceled,” 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.”
Ironically, the regions facing the steepest losses are those represented by Republican lawmakers. According to E2’s analysis, over $12 billion worth of projects and more than 13,000 jobs have been canceled this year in Republican-held districts. These same areas have received the lion’s share of clean energy benefits to date—more than 61 percent of all announced projects, 72 percent of jobs, and 82 percent of total investments since the passage of the Inflation Reduction Act.
“The House’s plan coupled with the administration’s focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers is causing businesses to cancel plans, delay their plans and take their money and jobs to other countries instead,” said Bob Keefe, executive director of E2.
Major projects affected include the Kore Power battery factory in Arizona, BorgWarner’s closure of two electric vehicle manufacturing sites in Michigan, and Bosch’s suspension of a $200 million investment in a hydrogen fuel cell factory in South Carolina. While some companies cited market shifts such as tariffs and inflationary pressures, the E2 report makes clear that political instability surrounding clean energy tax policy is a significant driver of the disruption.
Energy policy experts warn that states like Georgia and Tennessee, which have made significant commitments to electric vehicle and battery manufacturing, are particularly vulnerable.
“If all of a sudden these tax credits are removed, I’m not sure how these ongoing projects are going to continue,” said Marilyn Brown, a professor of energy policy at the Georgia Institute of Technology.
Fengqi You, a Cornell University engineering professor who was not involved in the report, echoed this concern: “The tax bill undermines business certainty in clean energy sectors.”
Since the passage of the Inflation Reduction Act in August 2022, 45 clean energy projects have been closed, downsized, or canceled—representing over $16 billion in lost investments and more than 20,000 jobs.
“Clean power is shovel-ready at scale,” said Jason Grumet, CEO of the American Clean Power Association. “With unprecedented demand growth for electricity, we must send consistent investment signals across the energy sector. The greatest threat to a reliable energy system is an unreliable political system.”
While cancellations dominate the landscape, a few bright spots remain. Nearly $500 million in new clean energy investments were announced in April, including:
- A $400 million expansion of a solar wafer factory in Michigan, projected to create at least 400 jobs.
- A $9.3 million investment from a Canadian solar equipment manufacturer to build a new plant in North Carolina.
- New factories producing solar, electric vehicle, grid, and transmission equipment in six states, with nearly 3,000 projected permanent jobs.
Still, these investments are dwarfed by the volume of cancellations. The uncertainty surrounding future tax credits has cast a long shadow over the sector.
Meanwhile, the Trump administration continues to push an energy agenda that prioritizes fossil fuels. Trump has described Biden’s climate policy as the “green new scam” and has overseen renewed efforts to withdraw from the Paris climate agreement, dismantle key pollution regulations, and promote fossil fuel expansion under the banner of “American energy dominance.”
While the U.S. retrenches, international peers are moving forward. The European Union is advancing the Carbon Border Adjustment Mechanism to discourage companies from relocating to countries with lax climate policies. The International Maritime Organization is progressing toward a global carbon tax on shipping. In contrast, the U.S. risks losing its competitive edge in the global transition to clean energy.
Some Republican lawmakers have expressed concern over the direction of the party’s energy policy. In an April letter, a group of GOP representatives warned Senate Majority Leader John Thune that repealing clean energy tax credits could “weaken the U.S. position as a world energy leader.”
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