First Solar, Inc. announced on February 20, 2025, the final sale amount of $857 million in Section 45X Advanced Manufacturing Production tax credits generated in 2024. This transaction was executed through two separate Tax Credit Transfer Agreements previously announced in December 2024.
Under these agreements, a third party agreed to purchase the tax credits at a price of $0.955 per $1.00 of credits. The transaction is expected to yield gross cash proceeds of approximately $819 million for First Solar upon its completion by February 28, 2025.
The monetization of these tax credits is expected to strengthen First Solar's balance sheet, providing crucial liquidity for its ongoing investments in U.S. manufacturing capacity and research and development infrastructure. The company anticipates a pre-tax impact to 2024 earnings of approximately $39 million and a post-tax impact of approximately $45 million, resulting in a reduction of diluted earnings by approximately $0.42 per share for the year.
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