First Photo voltaic has entered into two separate tax credit score switch agreements to promote $500M and as much as $200M of 2023 Inflation Discount Act Superior Manufacturing Manufacturing tax credit to Fiserv, topic to satisfaction of sure situations.
Below the phrases of the agreements, Fiserv pays $0.96 per $1 of tax credit to First Photo voltaic through the first half of subsequent yr, inclusive of charges and commissions paid by First Photo voltaic to the position agent.
“That is the IRA delivering on its intent, which is to incentivize excessive worth home manufacturing by offering producers with the liquidity they should reinvest in progress and innovation,” says Mark Widmar, First Photo voltaic CEO. “This settlement establishes an essential precedent for the photo voltaic business, confirming the marketability and worth of Superior Manufacturing Manufacturing tax credit.”
The tax credit end result from the sale of PV photo voltaic modules produced this yr by First Photo voltaic’s operational manufacturing footprint within the U.S. Because of its vertical integration, First Photo voltaic is eligible for Superior Manufacturing Manufacturing tax credit allowed for the manufacturing of PV wafers, cells, and modules below Part 45X of the IRA.
Citigroup World Markets is the position agent for First Photo voltaic on the transaction.
