While the US Senate is preparing to vote for a bill that would increase taxes on clean energy industry, some of those companies canceled another $ 1.4 billion in new factories and clean energy projects in May E2S Last monthly analysis From clean energy projects followed by E2 and Clean Economy Tracker.
The newest cancellations – including production – outfits in West Virginia, New York, Alabama, Arizona and Washington – mean $ 15.5 billion in new factories and electricity projects have been canceled since 1 January. The canceled projects are expected to create nearly 12,000 new jobs.
Republican congress districts lose the most, according to the E2 analysis. More than $ 9 billion in investments and nearly 10,000 jobs have been canceled so far, delayed or closed in Republican districts in 2025.
The $ 1.4 billion in projects canceled in May was expected to create at least 1,000 new jobs. Another 600 employees were fired over five closures announced last month. The May can also include GM’s decision to change an EV factory in Tonawanda, New York, to build eight-cylinder gas vehicles there.
“The consequences of continuous policy uncertainty and the expectation of higher taxes on clean energy companies become painfully clear,” says Michael Timberlake, communication director at E2. “Companies respond to the Senate’s proposal – such as that of the house – that the tax credits that had stimulated an American energy and production tree would drastically kill back.
In the midst of the cancellations, companies also announced almost $ 450 million in investments in May for new solar energy, EV and grid and transmission equipment in five states-understill an investment of $ 120 million by maker Rivian of electric vehicles to build 1.2 million square-foot Supplant Park. Prolec-ge Waukesh separately announced plans for a production facility of $ 140 million electricity trance formator in North Carolina, which was expected to create 330 new jobs.
Until May, 62% of all announced clean energy projects – together with 71% of all jobs and 82% of all investments – are represented by Republicans in congress districts.
“These cancellations are just the first shoe that falls,” Timberlake said. “With renewable energy that delivers more than 90 percent of new electricity in America last year, canceled projects will probably mean less available energy and higher electricity prices for both consumers and companies.”
Since the federal tax credits for clean energy were adopted by the congress in August 2022, a total of 53 announced projects were canceled, closed or closed. More than 21,000 jobs and $ 18.2 billion in investments were connected to the abandoned projects.
News item from E2
