The U.S. Treasury Department and IRS released new guidance on clean energy tax credits on August 18, 2025, which was received more favorably by investors than initially feared. This guidance provides crucial clarity and support for the renewable energy sector.
The new rules help define when projects will qualify as 'under construction,' a key factor in determining eligibility for tax credits. This clarity reduces significant policy risk that had been a concern for solar and wind farm developers.
For First Solar, this favorable guidance is a strong positive, as it helps stabilize the financial landscape for solar projects and supports continued investment in domestic manufacturing. It alleviates some of the uncertainty surrounding federal incentives, which are vital for the industry's growth.
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