US-based businesses cancelled or delayed more than $14bn in investments and 10,000 new jobs in clean energy and clean vehicle factories since January, amid fears over the future of federal clean energy tax credits and policy.
According to E2’s latest analysis of clean energy projects tracked by E2 and the Clean Economy Tracker, in April alone companies cancelled $4.5bn in investments in new battery, electric vehicle and wind projects in advance of the US House’s passage of a “massive tax and spending package that would essentially kill federal clean energy tax credits”.
An additional $1.5bn in newly found cancelled projects from previous months was also tracked by E2.
As the Senate prepares to take up the legislation, E2’s analysis shows that more than 10,000 announced jobs have already been cancelled amid concerns over the advance of the “One Big Beautiful Bill Act.”
Michael Timberlake, ES communications director, said: “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.
“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.
“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.”
Republican congressional districts, which have benefitted the most from the clean energy tax credits passed in 2022, also are seeing the most cancellations.
More than $12bn and over 13,000 jobs have been cancelled in Republican districts so far, according to the analysis.
Through April, over 61% of all clean energy projects announced – along with 72% of all jobs and 82% of all investments – are in congressional districts represented by Republicans.
While cancellations continue to rise, companies continue to invest in the potential of America’s clean economy.
Businesses in April announced nearly $500m in investments for new solar, EV and grid and transmission equipment factories across six states, including a $400m investment by Corning to expand a solar wafer factory in Michigan that is expected to create at least 400 new jobs and a $9.3m investment by a Canadian solar equipment manufacturer for a new plant in North Carolina.
Combined, the seven projects announced in April are expected to create nearly 3000 new permanent jobs if completed.
April’s announcements bring the overall number of major clean energy projects tracked by E2 to 390 across 42 states and Puerto Rico.
Companies have said they plan to invest nearly $132 billion in these projects and hire 123,000 permanent workers.
These figures reflect ongoing revisions and updates.
Since federal clean energy tax credits were passed by Congress in August 2022, a total of 45 announced projects have been cancelled, closed or downsized.
Nearly 20,000 jobs and $16.7bn in investments were connected with the abandoned projects.