Solar Ingot and Wafer Production Qualifies for 25% Investment Tax Credit Under CHIPS Act Final Rules

WASHINGTON, D.C. — Today, the U.S. Department of the Treasury clarified that solar ingot and wafer production facilities and equipment qualify for Section 48D 25% investment tax credit (ITC) under its final rules for the CHIPS and Science Act of 2022 (CHIPS).  

Treasury’s final rules confirm that Section 48D applies to advanced manufacturing facilities and equipment that produce semiconductors, including the slicing, etching, and bonding of the semiconductor-grade polysilicon used in photovoltaics (PV) modules.  

The section 48D investment tax credit is available for facilities that begin construction before 2027 and does not preclude facilities from qualifying for other applicable tax credits.  

Following is a statement from Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA) on the final rules:  

“Treasury’s final rules will create new opportunities for solar manufacturers and encourage the upstream development of the solar supply chain.  

“Supply chain accessibility and security remains one of our biggest challenges in the U.S. solar and storage industry. While the United States is a global leader in module manufacturing, we don’t have any ingot and wafer facilities in operation yet, representing a critical gap in the solar supply chain.  

“For the last two years, SEIA has been urging the administration to use all of the tools at its disposal to support ingot and wafer production. We commend Treasury for taking a thoughtful approach to industrial policy, helping to revitalize our communities with great-paying manufacturing jobs and boost our energy independence. This is a win-win for businesses and our economy and will continue the manufacturing renaissance in America for years to come.  

“We look forward to working with the solar and storage industry to build out our supply chain and realize the full potential of this new incentive.”  

Additional Background:  

Polysilicon wafers serve as the base of a solar cell and act as a semiconductor, creating the electrical current in a solar cell. To make the wafers, polysilicon is shaped into an ingot and then sliced to make wafers.  

The United States does not have ingot and wafer production in operation yet due to manufacturing complexities and the highly specialized equipment needed to create these facilities, making incentives an important part of the equation for wafer producers.

Since the Inflation Reduction Act passed, there have been 21 gigawatts of wafer announcements and 10 gigawatts of ingot announcements but only 3.3 GW of ingot and wafer capacity is under construction.  

To learn more about the solar supply chain, visit SEIA’s supply chain dashboard. 

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About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 30% of U.S. electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn and Instagram.

Media Contact:  

Jen Bristol, SEIA’s Senior Director of Communications, jbristol@seia.org (202) 556-2886