SEG Solar, which opened a solar module factory in Houston less than a year ago, completed its first sale of Section 45X Advanced Manufacturing Production Tax Credits, with a total value of up to $50 million.
Under the agreement, SEG said in a statement that an unnamed U.S. public company will pay a price of $0.94 per $1.00 of tax credit value across four installments tied to actual production output and sales of solar modules.
“This transaction provides us with significant cash flow, strengthens our financial position and enables us to further accelerate our investment in U.S. manufacturing,” said Jim Wood, CEO of SEG Solar. “By expanding our production capacity and deepening our domestic partnerships, we are not only advancing clean energy innovation but also contributing meaningfully to job creation and long-term economic growth.”
The 45X Advanced Manufacturing Tax Credit was extended through 2034 by the Inflation Reduction Act of 2022. The transferable tax credit market allows clean energy manufacturers to transfer the production tax credits to third parties for immediate payment. The Solar Energy Industries Association points out that the incredible surge in investment, which now totals $38.3 billion in domestic manufacturing, resulted from federal policies such as 45X.
SEG Solar reports it has invested more than $60 million in its Houston facility, which has achieved an annual production capacity of 2 GW through two fully automated production lines.
The transaction was facilitated by Moss Adams LLP (n/k/a Baker Tilly Advisory Group).
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