The U.S. Senate passed a massive tax and spending bill that will phase out and repeal federal tax policies creating jobs, driving new investments in manufacturing, and increasing American energy production.
Businesses have announced about 400 large-scale factories and projects that benefit from the tax policies the Senate is expected to phase out and repeal. If approved by the House, the Senate bill would put many of those projects – along with $132 billion in business investments and more than 120,000 jobs – at risk, according to the national nonpartisan business group E2.
The Senate legislation also would make it more expensive to develop new solar, wind and battery projects that currently account for more than 90 percent of all new power being added to the grid – resulting in higher electricity costs for consumers and businesses alike.
The following is a statement from Bob Keefe, E2 executive director and author of the 2024 book about federal energy policy, Clean Economy NOW.
“America’s economy and energy security just took a massive step backward—one that may be hard to recover if not fixed immediately.
“This bill will slam the brakes on made-in-America energy projects, push businesses to take their factories and investments overseas, and drive up energy costs for families and businesses. It’s reckless, it’s shortsighted, and it hands our competitors like China an open invitation to lead while we fall behind.
“President Trump wants to dramatically increase US energy production. This bill does the opposite.”
More resources:
- See E2’s clean energy factory and project tracker here with details on the more than 390 major projects now planned across almost every state, including leaders Michigan, Georgia, South Carolina, North Carolina, Texas and Tennessee.
- See E2’s latest monthly Clean Economy Works report showed businesses cancelled or downsized $15.5 billion in investments and 10,000 new jobs in new clean energy projects since the start of 2025.
- See E2’s latest annual Clean Jobs America analysis and interactive map breaking down America’s 3.5 million clean energy jobs to the state and county levels—jobs that could be impacted by tax increases on clean energy companies and plans by the White House to stifle growth in wind, electric vehicles and other clean energy industries.
- See the Solar Energy Industries Association’s (SEIA) new report that found the just-passed House bill would force 287 American solar and storage factories to close, cost 292,000 American jobs, and erase $220 billion in local investment.
- See Clean Energy Buyers Association’s (CEBA) new report showing how repealing clean energy tax credits would increase average annual residential electricity bills by at least 7 percent ($110 per year) and raise business electricity bills by 10 percent.
- See E2’s economic impact analysis of 334 large-scale clean energy factory and projects announced by companies between August 2022 and August 2024, tracked by E2’s Clean Economy Works
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and managed more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on X/Twitter at @e2org and Bluesky at @e2.org.