Shares of First Solar Inc (NASDAQ:FSLR) are trading higher Monday afternoon and have posted gains over the past week, following new guidance from the Treasury Department and IRS concerning tax credits for clean energy projects. Here’s what investors need to know.
What To Know: Per a Bloomberg report, the updated rules, released on Friday, adjust how companies can qualify for credits established under the Biden-era tax-and-climate law.
Previously, developers could establish the start of construction through two primary methods: initiating physical work or by meeting a “safe harbor” provision, which involved paying at least 5% of the total project costs.
The new guidance, detailed in Notice 2025-42, largely eliminates the 5% safe harbor option for wind and solar facilities to meet the beginning of construction deadlines. This means most companies will now have to rely on the physical work test to qualify for the valuable clean electricity investment and production credits.
However, Bloomberg reports the 5% safe harbor remains a viable option for low-output solar facilities, defined as those with a maximum net output of 1.5 megawatts or less. This distinction could prove advantageous for companies specializing in smaller-scale projects.
The guidance is considered critical for developers, as wind and solar projects must begin construction within a year or be operational by the end of 2027 to be eligible for the expiring tax credits.
The changes come after President Donald Trump, following the passage of the Big Beautiful Bill that disbands many of the credits, ordered Treasury to revise the rules to prevent circumvention.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which provide four critical scores to help investors identify strong and weak stocks, First Solar demonstrates a particularly strong profile for growth while showing weakness in quality.
The company’s Growth score is a very high 81.45, suggesting strong performance in this area. It receives more moderate scores for Value at 63.58 and Momentum at 57.61. The stock’s most significant weakness is its Quality score, which is notably low at 26.08.
Price Action: According to data from Benzinga Pro, FSLR shares are trading higher by 8.78% to $217.50 Monday afternoon. The stock has a 52-week high of $262.72 and a 52-week low of $116.56.
Read Also: Nio Stock Is Trending Monday: What’s Going On?
How To Buy FSLR Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in First Solar’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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