As the U.S. Senate prepares to vote on a bill that would increase taxes on clean energy industries, some of those businesses canceled another $1.4 billion in new factories and clean energy projects in May, according to E2’s latest monthly analysis of clean energy projects tracked by E2 and Clean Economy Tracker.
The latest cancellations — including manufacturing outfits in West Virginia, New York, Alabama, Arizona and Washington — mean $15.5 billion in new factories and electricity projects have been cancelled since January 1. The cancelled projects were expected to create nearly 12,000 new jobs.
Republican congressional districts are losing the most, according to E2 analysis. More than $9 billion in investments and almost 10,000 jobs have been cancelled, delayed or closed in Republican districts so far in 2025.
The $1.4 billion in projects cancelled in May were expected to create at least 1,000 new jobs. Another 600 workers were laid off across five closures announced last month. May’s cancellations also include GM’s decision to switch an EV factory in Tonawanda, New York, to build eight-cylinder gas vehicles there.
“The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear,” said Michael Timberlake, communications director at E2. “Businesses are reacting to the Senate’s proposal — like the House’s — that would drastically scale back the very tax credits that had been driving an American energy and manufacturing boom.
Amid the cancellations, businesses in May also announced nearly $450 million in investments for new solar, EV and grid and transmission equipment factories across five states — including a $120 million investment by electric vehicle maker Rivian to build 1.2 million-square-foot supplier park in Illinois that is expected to create 100 new jobs. Separately, Prolec-GE Waukesh announced plans for a $140 million electricity transformer manufacturing facility in North Carolina expected to create 330 new jobs.
Through May, 62% of all clean energy projects announced — along with 71% of all jobs and 82% of all investments — are in congressional districts represented by Republicans.
“These cancellations are just the first shoe to drop,” Timberlake said. “With renewable energy supplying more than 90 percent of new electricity in America last year, canceled projects will likely mean less available energy and higher electricity prices for consumers and business alike.”
Since federal clean energy tax credits were passed by Congress in August 2022, a total of 53 announced projects have been cancelled, closed or downsized. More than 21,000 jobs and $18.2 billion in investments were connected with the abandoned projects.
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