en.Wedoany.com Reported - The U.S. One, Big, Beautiful Bill Act (OBBBA) has resulted in a $68.2 billion loss in capital investment for clean energy projects, according to the latest analysis by the business advocacy organization E2.
E2 estimates that between January 2025 and May 2026, the suspension and cancellation of 216 major clean energy projects led to a $68.2 billion reduction in capital investment, a $48.4 billion loss in annual project operating investments, and a $31.6 billion decrease in local, state, and federal tax revenue. OBBBA became law on July 4, 2025, and the industry had anticipated changes to clean energy project support structures since Trump's election in November.
These cancellations and delays have cumulatively resulted in the loss of 124,511 jobs during the five-year construction phase, as well as the annual loss of 343,390 operations and maintenance positions. E2 estimates that reduced construction activity has cost the U.S. GDP $91 billion, while the cancellation of manufacturing plants and other operational facilities has caused an annual GDP growth loss of $55 billion, an economic impact exceeding that of the entire U.S. spectator sports industry.
The report notes that due to the closure or scaling back of many affected projects, ongoing operations have decreased, with annual operating expenditures being relatively high compared to capital investments. Battery storage is the most affected technology sector, with a 35% reduction in capital investment and jobs since January 2025; solar energy follows closely with a 25% reduction; electric vehicles and wind power have seen reductions of 24% and 16%, respectively.
OBBBA has imposed restrictions and shortened timelines on multiple federal tax supports introduced by the Biden administration for clean energy deployment and manufacturing. Previous E2 research showed that the Biden administration's Inflation Reduction Act (IRA) brought $130 billion in investment to 338 major clean energy projects within two years. The Solar Energy Industries Association (SEIA) previously estimated that up to 116 gigawatts of U.S. solar and energy storage projects face political challenges due to federal policy changes; SEIA stated that at a time of surging electricity demand, the U.S. government is using every means to slow down solar and energy storage projects.
The act sets stricter deadlines for projects to qualify for the 30% Investment Tax Credit and Production Tax Credit (ITC/PTC) under the IRA, requiring projects to demonstrate "commencement of construction" within one year of OBBBA's passage to receive the credits. The rules have spurred a surge in early project development and procurement transactions, but potential changes and retroactive rulings remain after the deadline. The act also introduces complex Foreign Entity of Concern (FEOC) restrictions, prohibiting procurement of products, financing, or components from China-affiliated companies, with failure to meet thresholds that change over time resulting in ineligibility for tax credits.
In its analysis, E2 stated that these direct and indirect job and investment losses collectively indicate that the rollback of clean energy incentives in OBBBA has hindered progress in domestic manufacturing, clean energy production, transportation, and infrastructure modernization, while forfeiting the associated economic benefits.
