More than $14 billion in clean energy investments across the United States have either been scrapped or postponed this year, according to a new analysis released on Thursday. The uncertainty stems from President Donald Trump’s proposed sweeping tax legislation, which has sparked concerns about the future of domestic development in batteries, electric vehicles (EVs), and renewable energy sources such as solar and wind.
Nonpartisan environmental group E2, along with consultancy Atlas Public Policy, tracked these cancellations and delays. Their findings highlight the alarm among clean energy companies over the House Republicans’ recently passed tax bill. The bill would significantly reduce clean energy tax credits, potentially undermining the incentives that have been crucial in driving green energy investments.
E2 reported that since January, these cancellations and delays have also resulted in the loss of around 10,000 potential clean energy jobs.
The tax incentives in question were strengthened under the 2022 Inflation Reduction Act, a major climate and energy bill signed by then-President Joe Biden. These credits were intended to support the transition from fossil fuels to renewable energy by making technologies like solar panels, wind turbines, and EVs more affordable and attractive to investors.
Since the Inflation Reduction Act passed, E2 estimates that $132 billion in clean energy investment plans have been announced. That figure does not include the recent cancellations, which signal a stark reversal in momentum for the sector.
The new tax bill, passed in the House last week, would severely curtail or eliminate many of the incentives offered in Biden’s legislation. This has drawn sharp criticism from environmental advocates and clean energy proponents, who warn that the move could cripple the industry just as it was beginning to gain speed.
“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 E2 executive director Bob Keefe.
Currently, the Senate is reviewing the bill, and lawmakers have set an informal deadline of July 4 to finalize it and send it to President Trump for signing.
Among the most notable project cancellations are the Kore Power battery manufacturing facility in Arizona and BorgWarner’s decision to close two EV manufacturing plants in Michigan. Additionally, Bosch has paused a planned $200 million investment in a hydrogen fuel cell plant in South Carolina, pointing to changing market conditions in a statement to the Associated Press.
While some of these cancellations are directly tied to policy uncertainty, others may also be influenced by broader economic factors. Tariffs, inflation, the slow pace of adoption for certain clean technologies, and struggles faced by newer companies in the sector have all contributed to the growing list of scrapped or postponed projects. The battery storage and EV sectors, in particular, have been hit hard in 2025, although some projects launched under the Inflation Reduction Act had already been canceled before this year.
According to E2’s analysis, over $12 billion of the canceled projects this year were located in Republican-led states and congressional districts. Ironically, many of these districts have benefited more than Democratic ones from the clean energy boom, especially in terms of job creation and local investment.
Experts warn that states such as Georgia and Tennessee, which have made significant investments in EV and battery production, could be disproportionately affected if the tax credits are rolled back. “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, an energy policy professor at the Georgia Institute of Technology who was not part of the E2 analysis.
Fengqi You, an engineering professor at Cornell University who also was not involved in the study, echoed the concern. He warned that stripping away the credits could destabilize the industry and disrupt ongoing projects.
Despite the Republican push for the repeal, a small number of GOP lawmakers have expressed concern over its potential consequences. In April, a few Republicans sent a letter to Senate Majority Leader John Thune of South Dakota, urging the continuation of clean energy tax incentives. They argued that repealing the credits could harm American households and weaken the United States’ leadership in the global energy market.
While the Trump administration continues to dismantle many of Biden’s climate and environmental initiatives, other nations are moving ahead with ambitious green policies. Trump has described Democratic climate efforts as part of a “green new scam” and has overseen a series of rollbacks, including withdrawing from the Paris climate agreement, overturning key pollution regulations, halting renewable energy funding, and rejecting scientific findings that support climate action.
As Trump pushes a fossil fuel-driven strategy framed as “American energy dominance,” global counterparts are reinforcing their commitment to climate goals. The European Parliament is backing the European Union Carbon Border Adjustment Mechanism, a policy designed to prevent companies from shifting production to countries with laxer climate rules. Meanwhile, the International Maritime Organization is advancing plans for a global carbon tax on the shipping industry.
Still, there are signs of resilience within the U.S. renewable sector. In April, despite mounting uncertainty, nearly $500 million in new clean energy developments were announced. Among these, Japanese firm Hitachi’s energy division committed to expanding its transmission and electrification operations in Virginia, while technology company Corning invested in solar manufacturing projects in Michigan.
Nevertheless, the broader trend remains troubling. E2 reported that $4.5 billion in clean energy developments were either canceled or delayed in April alone. This underscores the precarious state of the industry as it awaits the final outcome of the tax bill.
As the Senate deliberates and the July 4 deadline approaches, clean energy stakeholders are watching closely. The outcome could determine whether the United States remains a global leader in renewable energy innovation or retreats into a fossil fuel-heavy energy strategy reminiscent of decades past.
The coming weeks will be critical in shaping not only the domestic energy landscape but also America’s standing in the global climate movement.