Clean energy stocks, including First Solar, Inc., rallied on June 30, 2025, after the U.S. Senate removed a widely criticized excise tax from its version of the 'One Big Beautiful Bill Act.' This tax would have applied to solar and wind projects using components from foreign entities of concern, potentially adding up to $7 billion to the industry's tax burden.
The removal of this punitive measure provides significant relief to the solar industry. Additionally, while the Senate bill still phases out clean electricity investment and production tax credits, the timeline is less strict than previous versions, allowing projects starting construction within 12 months of the bill's enactment to qualify for full tax credits.
First Solar saw its shares jump nearly 9% as the legislation appeared to allow the manufacturer to claim credits for both components and final products. This is particularly beneficial for First Solar's vertically integrated U.S. manufacturing, enhancing its competitive advantage and profitability under the revised policy framework.
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