Plug Power (PLUG -17.94%) stock is getting hit with a round of big sell-offs in Tuesday's trading. The hydrogen fuel cell company's share price was down 18.1% as of 3:30 p.m. ET. Meanwhile, the S&P 500 (^GSPC -0.79%) was down 0.8%, and the Nasdaq Composite (^IXIC -0.79%) was down 0.9%.

Plug Power's valuation is heading lower today following news that the U.S. is set to reduce support and incentives for renewable energy projects and initiatives. Adding another bearish catalyst, investors are concerned that the U.S. could get involved in Israel's conflict with Iran.

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Plug Power stock sinks on spending bill news

Renewable energy stocks are seeing big sell-offs today following news that the latest version of President Trump's budget bill in the Republican-controlled Senate does away with incentives and other support for renewable energy programs. Specifically, the bill would be winding down support for solar power and wind power projects -- with the target of having the relevant incentives completely eliminated by 2028. While the bill does not make any specific reference to the hydrogen fuel cell technologies that Plug Power specializes in, the proposed legislation does signal a broader governmental pivot away from renewable energy technologies.

Concerns about conflict in the Middle East are also pushing Plug Power lower

The bearish news on the spending bill for Plug Power also arrived in conjunction with increased concerns that the military conflict between Israel and Iran will continue to escalate -- and that the U.S. could enter in support of Israel. Recent comments from President Trump and news that a U.S. aircraft carrier was being repositioned from the South China Sea to off the coast of the Middle East have added to selling pressures today.

Plug Power stock has been highly volatile lately, and its stock has lost roughly half of its value across 2025's trading. With the company's stock price now in the region of $1 per share, there's a good chance the company will move forward with a reverse stock split in order to remain in compliance with the requirements of the Nasdaq exchange. If so, the move could create another source of volatility for the stock.