Businesses Cancel $1.4 Billion in New Factories, Energy Projects in May as Congress Pushes Forward on Tax Increases

As the U.S. Senate prepares to vote on massive tax and spending bill that would increase taxes on clean energy factories and projects, 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 battery, electric vehicle and solar panel factories 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. 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 cancel plans for an EV factory in Tonawanda plant in New York and instead shift its investments there to build 8-cylinder gas vehicles.

E2 Communications Director Michael Timberlake said, “The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear. 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.

“These cancellations are just the first shoe to drop. 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.”

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. Combined, the eight projects announced in May are expected to create at least 1,310 new permanent jobs if completed.

Through May, 62 percent of all clean energy projects announced — along with 71 percent of all jobs and 82 percent of all investments — are in congressional districts represented by Republicans.

According to a separate report from the Clean Energy Buyers Association, average household utility bills would rise by more than $110 per year and businesses would see at least a 10 percent increase in energy costs if Congress goes forward with its plans to repeal clean energy tax credits.

May’s announcements bring the overall number of major clean energy projects tracked by E2 to 397 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 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.

Additionally, If the bill were to pass, it could immediately halt the following projects in Kansas:

• EDP Renewables’ Plum Nellie Wind Farm in Cloud County will deliver 200 MW of clean energy, expected online in October 2027. Announced in February 2022, it aims to create over 300 construction jobs, inject $17 million into the local economy, and pay $33.6 million to landowners. 
• Invenergy’s Pixley Solar Energy Center in Barber County will supply 189 MW of electricity to power 43,000 homes by 2025. Announced in 2017, it promises 300 construction jobs and economic growth through capital investment, salaries, property taxes, and landowner payments.
• Sunflower’s Boothill Solar Project in Ford County will generate 150 MW to power 38,000 homes, contributing over $50 million to Ford County. Construction began in March 2025, with completion slated for late 2026.