Press release
First Solar Signs Agreements for Sale of up to $700 Million in 2023 IRA Advanced Manufacturing Production Tax Credits
Deal with Fiserv, Inc., believed to be the first significant Section 45X credit transfer in the solar industry Tax Credit Transfer Agreements signed eight
About this update from First Solar, Inc.
[{"type":"text","content":"\n\nDeal with Fiserv, Inc., believed to be the first significant Section 45X credit transfer in the solar industry\n\n\n\nTax Credit Transfer Agreements signed eight days following issuance of notice of proposed rulemaking by the US Department of Treasury and Internal Revenue Service to implement the Section 45X credits\n\n\n\nThe Section 45X credits transacted at a price of $0.96 per $1 of 2023 tax credits, inclusive of fees and commissions paid by First Solar to the placement agent\n\n\n\n TEMPE, Ariz.--(BUSINESS WIRE)--\nFirst Solar, Inc. (Nasdaq: FSLR) today announced that it entered into two separate Tax Credit Transfer Agreements (TCTAs) on December 22, 2023, to sell $500 million and up to $200 million, respectively, of 2023 Inflation Reduction Act (IRA) Advanced Manufacturing Production tax credits to Fiserv, Inc. subject to satisfaction of certain conditions. Under the terms of the agreements Fiserv will pay a price of $0.96 per $1 of tax credits to First Solar during the first half of 2024, inclusive of fees and commissions paid by First Solar to the placement agent.\n\n\nCitigroup Global Markets, Inc. is the placement agent for First Solar on the transaction, which is believed to be the first significant credit transfer of its kind in the solar manufacturing industry. The agreements were signed just eight days following issuance of notice of proposed rulemaking by the US Department of Treasury and Internal Revenue Service to implement the Section 45X credits.\n\n\n“This is the IRA delivering on its intent, which is to incentivize high value domestic manufacturing by providing manufacturers with the liquidity they need to reinvest in growth and innovation,” said Mark Widmar, chief executive officer, First Solar. “This agreement establishes an important precedent for the solar industry, confirming the marketability and value of Advanced Manufacturing Production tax credits.”\n\n\n“The liquidity generated as a result of this transaction is expected to accelerate the timing of enhancing our cash position in the US through the monetization of the Section 45X credits, further strengthening our balance sheet and allowing us to continue investing in key aspects of growth, such as research and development,” said Alex Bradley, chief financial officer, First Solar. “As it relates to the 2023 financial year, we expect a pre- and p...