US lawmakers proposed suspending 45X manufacturing tax credits, and US solar stocks generally rose

The Zhitong Finance App learned that previously, US Republican Representative John Moolenaar and Maine Democratic Representative Jared Golden submitted a resolution to the House of Representatives proposing to suspend the US 45X Advanced Manufacturing Production Tax Credit (PTC). Affected by this news, most US solar stocks rose on Monday. Enphase Energy (ENPH.US) closed up 8.4%, Solaredge Technologies (SEDG.US) closed up 15.9%, Artex Solar (CSIQ.US) closed up 9.7%, Sunrun (RUN.US) 9.6%, Sunnova Energy (NOVA.US) closed 9%, Array Technologies (ARRY.US) closed up 5.9%, Shoals Technologies (SHLS.US) closed up 4.9%, JKS.US (JKS.US) closed up 4%, First Solar (FSLR.US) closed up 3.4%, and Fluence Energy (FLNC.US) closed 2.1%.

According to data, the 45X tax credit policy is a key provision in the US Inflation Reduction Act (IRA). It aims to encourage companies to invest in the construction of clean energy manufacturing facilities in the US and promote the development of the US clean energy industry. The policy provides tax credits for the production of eligible products such as photovoltaic cells, silicon wafers, polysilicon, backplates, components, tracking brackets, and inverters.

Some US lawmakers are concerned that foreign companies, especially those linked to so-called “concerned foreign entities” such as China, may benefit from this tax credit policy, thereby harming the interests of local US companies. They believe that this policy may cause US tax funds to flow abroad without actually promoting the development of the domestic manufacturing industry in the US, so they proposed suspending this tax credit policy to protect the competitiveness of local US companies.