Solar panel manufacturer First Solar (FSLR.O) revealed its intention on Wednesday to sell up to $700 million in tax credits accrued from the sale of photovoltaic (PV) solar modules this year. The buyer in this financial transaction is payments firm Fiserv (FI.N).
Under the recently established guidelines of the Inflation Reduction Act (IRA), First Solar is among the companies qualifying for tax credits due to its role in producing clean energy components.
The specific credits in question, known as 45X or Advanced Manufacturing Production tax credits, are extended for each domestically manufactured product in the United States. The overarching aim is to incentivize the shift toward cleaner energy sources while reducing dependence on components made in China.
According to the terms delineated in two distinct agreements inked by the companies, First Solar is anticipated to receive $0.96 for every $1 of tax credits during the initial half of 2024.
This strategic financial move follows the recent release of guidelines by the U.S. Treasury, offering clarity to manufacturers seeking tax credits for their production of clean-energy components, including solar panels and batteries. The guidelines define eligible components, encompassing inverters and PV solar equipment.