Clean Energy Projects Worth $1.4 Billion Canceled Amid Senate Tax Bill Debate

As the U.S. Senate considers a sweeping tax and spending bill that would raise taxes on clean energy manufacturers, companies canceled $1.4 billion in clean energy projects in May alone, according to the latest report from E2 and the Clean Economy Tracker.

The cancellations—spanning battery, electric vehicle, and solar facilities in five states—bring total clean energy project losses to $15.5 billion and nearly 12,000 jobs since January. Republican districts have been hit hardest, with over $9 billion in projects and close to 10,000 jobs lost or delayed in 2025.

Among May’s canceled projects was GM’s decision to scrap an EV plant in Tonawanda, New York, in favor of producing gas-powered vehicles. An additional 600 workers were laid off in connection with five separate closures last month.

Michael Timberlake, E2’s Communications Director, warned the Senate bill would “drastically scale back the very tax credits that had been driving an American energy and manufacturing boom.” He added that more cancellations could follow, risking higher energy costs nationwide.

Despite the setbacks, some new investments continue. Eight new projects totaling $450 million were announced in May, including a $120 million Rivian supplier park in Illinois and a $140 million transformer facility in North Carolina—together expected to generate 1,310 new jobs.

Since Congress passed federal clean energy tax credits in 2022, companies have announced nearly $132 billion in investments across 397 projects. However, 53 projects have since been canceled or downsized, tied to $18.2 billion in lost investment and over 21,000 jobs.

source: e2.org