First Solar Signs Agreements for Sale of up to $700 Million in 2023 IRA Advanced Manufacturing Production Tax Credits

First Solar, Inc.( Nasdaq FSLR) moment blazoned that it entered into two separate duty Credit Transfer Agreements( TCTAs) on December 22, 2023, to vend$ 500 million and over to$ 200 million, independently, of the 2023 Affectation Reduction Act( IRA) Advanced Manufacturing product duty credits to Fiserv, Inc. subject to the satisfaction of certain conditions. Under the terms of the agreements Fiserv will pay a price of$0.96 per$ 1 of duty credits to First Solar during the first half of 2024, inclusive of freights and commissions paid by First Solar to the placement agent. Citigroup Global Requests, Inc. is the placement agent for First Solar on the sale, which is believed to be the first significant credit transfer of its kind in the solar manufacturing assiduity. The agreements were inked just eight days following the allocation of notice of proposed rulemaking by the US Department of Treasury and Internal Revenue Service to apply for the Section 45X credits.

“ This is the IRA delivering on its intent, which is to incentivize high-value domestic manufacturing by furnishing manufacturers with the liquidity they need to reinvest in growth and invention, ” said Mark Widmar, principal administrative officer, of First Solar. “ This agreement establishes an important precedent for the solar assiduity, attesting to the marketability and value of Advanced Manufacturing product duty credits. ” “ The liquidity generated as a result of this sale is anticipated to accelerate the timing of enhancing our cash position in the US through the monetization of the Section 45X credits, further strengthening our balance distance and allowing us to continue investing in crucial aspects of growth, similar as exploration and development, ” said Alex Bradley, principal fiscal officer, First Solar. “ As it relates to the 2023 fiscal time, we anticipate a pre- and post-tax impact of over to$ 28 million, performing in a reduction of our diluted earnings of over to$0.26 per share for the time. ” The duty credits affect the trade of photovoltaic( PV) solar modules produced in 2023 by First Solar’s functional manufacturing footmark in the United States, including its third Ohio plant, which was commissioned before this time.

The company’s completely vertically integrated solar manufacturing installations produce thin film wafers, cells, and modules in a single intertwined process that sees a distance of glass converted into a completely functional solar panel in roughly four hours. As a result of its perpendicular integration, First Solar is eligible for Advanced Manufacturing product duty credits allowed for the product of PV wafers, cells, and modules under Section 45X of the IRA. The solar technology and manufacturing company expects to invest over 2 billion in new manufacturing installations in Alabama and Louisiana, while also expanding its Ohio footmark, and expects to have 14 gigawatts of completely vertically integrated US solar manufacturing capacity by 2026. also, First Solar is investing up to$ 370 million in a devoted R&D invention center in Perrysburg, Ohio, anticipated to be completed.

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