The Inflation Reduction Act (IRA) of 2022 kicked off a 10-year clean energy industrial policy in the United States, but it is now under threat of having core elements repealed via the “Big, Beautiful Bill” that has been approved by the House of Representatives and next faces a vote by the Senate.
Unprecedented announcements in U.S. clean energy followed the 2022 law. E2 tracks these announcements in its Clean Economy Works report. Since the IRA was passed, over 390 clean energy projects in 42 states representing over $130 billion in investment and 120,000 jobs have been announced, according to the report.
However, if the Senate passes the budget resolution as-written, core elements of the IRA, including the Investment Tax Credit and Production Tax Credit, will be repealed for projects not placed in service by 2028. This ends critical clean energy industrial policy support about five years ahead of schedule.
This uncertainty, combined with uncertainty surrounding tariff rates and enforcement, has led to a growing number of cancelled projects and factories. E2 said $14 billion in clean energy projects and 10,000 jobs have been cancelled in 2025. About $4.5 billion in cancellations occurred in April alone, said E2.
“Now is not the time to raise taxes on clean energy and compound the business uncertainty that is clearly taking a greater and greater toll on U.S. manufacturing and jobs,” said Michael Timberlake, director of communications, E2.
What’s more, most of the cancelled investments occurred in Republican districts. Democratic House members unanimously voted against the budget bill, but it was approved by a razor-thin majority due to strong Republican support.
More than $12 billion in investment and 13,000 jobs have been cancelled in Republican voting districts thus far, said E2. Through April, over 61% of all clean energy projects announced—along with 72% of all jobs and 82% of all investments —are in congressional districts represented by Republicans.
“Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America’s growing energy demand and that’s driving unprecedented economic growth in every part of the country,” said Timberlake.
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