First Solar benefits from carve-out in Trump's tax bill, shares up 5%

President Trump’s new tax-and-spending bill is expected to have a negative impact on solar stocks due to the removal of clean energy tax credits. However, First Solar stands to benefit from a carve-out in the bill that preserves tax credits on American-made components. The company’s shares have recovered and are up 5% for the year.

The new legislation eliminates the residential solar tax credit and imposes construction deadlines for commercial projects to be eligible for tax credits. These changes create challenges for solar developers, but First Solar’s core business may be less affected. The company’s ability to meet new requirements gives it a competitive edge over rivals.

In the first quarter of 2025, First Solar saw a 6.4% increase in sales but missed revenue estimates. Net income dropped by 11% due to new tariffs impacting the business. The company revised its full-year outlook, expecting lower revenue and operating income. Analysts maintain a “Strong Buy” rating on the stock with a price target implying 10.8% upside potential.

Read more at Yahoo Finance: This 1 Solar Stock Could Be a Rare Winner from Trump’s Big Beautiful Bill