First Solar to Sell $700M IRA Tax Credits to Fiserv
- First Solar is selling up to $700 million of 45X Advanced Manufacturing Production tax credits to Fiserv to become a clean-energy leader and reduce reliance on Chinese-made components. $0.96 of credits per $1 of tax will be received in 2024.
Solar panel manufacturer First Solar announced on Wednesday that it plans to sell up to $700 million of tax credits it accumulated through the sale of photovoltaic (PV) solar modules this year to payments firm Fiserv. 45X credits, also known as Advanced Manufacturing Production tax credits, are offered for each product manufactured domestically in the U.S. under the Inflation Reduction Act (IRA) to incentivize the transition to cleaner energy and reduce the reliance on Chinese-made components. According to the two agreements signed by the companies, First Solar is expected to receive $0.96 per $1 of tax credits in the first half of 2024. The move follows the U.S. Treasury's recent announcement of guidelines for manufacturers looking to claim tax credits for their production of clean-energy components such as solar panels and batteries.
What Is First Solar Selling to Fiserv for $700 Million?
- First Solar is selling up to $700 million of tax credits, known as 45X credits, to Fiserv.
- These credits are offered for each product manufactured domestically in the U.S. under the Inflation Reduction Act (IRA) to incentivize the transition to cleaner energy and reduce the reliance on Chinese-made components.
- The sale of tax credits follows the U.S. Treasury's recent announcement of guidelines for manufacturers looking to claim tax credits for their production of clean-energy components such as solar panels and batteries.
- First Solar is expected to receive $0.96 per $1 of tax credits in the first half of 2024 as part of the agreement.
- The move is seen as an effort to help First Solar diversify its revenue streams and remain competitive in the renewable energy market.
