Uncertain tax credits halt green tech clean energy projects

TL/DR –

President Trump is looking to repeal the Inflation Reduction Act, which provides tax credits and deductions to those investing in clean energy technology. A report from environmental business think tank E2 states that 16 clean energy projects have been cancelled in 2025 due to worries over the future of federal clean energy tax credits, resulting in nearly $8 billion in clean tech investments lost. Many businesses, such as Michigan-based solar, energy storage, and EV charging provider, Absolute Solar, have seen clients pausing or cancelling their clean energy projects due to fears they won’t receive tax credits.

President Trump Aims to Repeal Inflation Reduction Act

President Trump’s desire to repeal the Inflation Reduction Act (IRA), a crucial climate legislation offering tax credits to clean energy technology investors, poses a threat to green tech buyers. Despite this, the IRA and its tax incentives remain intact.

Impact on Clean Energy Projects and Investments

According to a report by environmental business think tank E2, 16 clean energy projects have been cancelled in 2025, leading to a loss of nearly $8 billion in clean tech investments. E2 cites “concerns over future of federal clean energy tax credits” as the cause of these cancellations.

Clean Energy Companies Facing Uncertainty

Michael Timberlake, E2 Communications Director, stated that clean energy companies are eager to invest in America, but the uncertainty surrounding Trump administration policies and the future of clean energy tax credits is having a significant impact.

Concerns from Clean Energy Providers

Rob Kaercher, CEO of Absolute Solar, a Michigan-based solar, energy storage, and EV charging provider, reported to Tech Brew that clients are postponing or cancelling their clean energy projects due to concerns about receiving tax credits. Kaercher noted the bipartisan support for the law and expressed frustration at the damage caused by the uncertainty.

Reassurance for Clean Tech Buyers

Kaercher has been reassuring customers that the IRS continues to provide tax credits according to the IRA. He advises that now is the time to invest in clean tech and benefit from the incentives before a potential repeal of the IRA in the near future.

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