Canadian Premium Sand, (CPS), recently received notice from the Internal Revenue Service that it will grant $75 million in tax credit allocation to the company’s planned U.S. facility.
The company has selected a former glass factory site in the “southern” U.S., but it has not disclosed the location. CPS said it intends to partner with a U.S. glass manufacturer to make solar glass to serve the U.S. solar industry.
48C is an investment-based credit that offers a 30% credit against the investment. The application process is competitive, Eli Hinkley, a partner in Baker Botts, Washington DC office said in a pv magazine USA Roundtable event. CPS corroborated this, saying that its application was one of 140 selected in a pool of 800 submissions.
The Inflation Reduction Act provided $10 billion in funding for the expanded 48C program. In order to receive full value of the credit, projects must meet prevailing wage and registered apprenticeship standards.
The tax credit allocation for CPS is transferable, providing it with the option to monetize the credit by selling the tax credit for cash or enter into a tax-equity transaction with a third party to support project financing. CPS said it’s in the process of evaluating these options as it advances the project to a “final investment decision” later this year.
The company’s planned U.S. facility is expected to produce 4 GW of domestic solar glass. CPS reports it has taken several steps in setting up its new U.S. facility including generating pre-construction engineering and design, initiating an update of an existing Environmental Protection Act permit and advancing offtake discussions with its customer base.
CPS reports it is negotiating up to 60% of the U.S. output under both binding contracts and memorandums of understanding. In 2023, the company signed offtake agreements with major module manufacturers Qcells, Meyer Burger, and Heliene.
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