(Reuters) – Solar panel manufacturer First Solar said on Wednesday it plans to sell up to $700 million in tax credits it accumulated through the sale of photovoltaic (PV) solar modules this year to payments firm Fiserv.
First Solar is one of the companies eligible for the tax credits for producing clean energy components under the new guidelines for the Inflation Reduction Act (IRA).
45X credits, also known as Advanced Manufacturing Production tax credits, are offered for each product manufactured domestically in the U.S. to incentivize the transition to cleaner energy and reduce the reliance on Chinese-made components.
As per the terms of two separate 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 agreement comes weeks after The U.S. Treasury announced guidelines for manufacturers looking to claim tax credits for their production of clean-energy components such as solar panels and batteries.
The new rules clarified components eligible for tax credits, such as inverters and PV solar equipment.
(Reporting by Kabir Dweit; Editing by Tasim Zahid)
