Manufacturing tax credits for inverters, trackers included in updated Build Back Better draft

Facebook
Twitter
LinkedIn
Reddit
Email
Nextracker’s NX Horizon tracker. Image: Nextracker.

The US Senate Finance Committee has included manufacturing incentives for domestic producers of solar trackers and inverters in its draft version of the country’s Build Back Better (BBB) budget reconciliation bill.

Published on 11 December, the draft expands the advanced manufacturing production credit component of the bill, which also includes support for the domestic manufacture of solar modules, cells, wafers and solar-grade polysilicon.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The updated text sees credits for those remain at the same rate as the previous version, but with a phaseout postponed by two years, from 2026 to 2028, which would also apply to tracker equipment and inverters.

Under the proposals from the finance committee, the tracker manufacturing tax credits would be:

  • Torque tubes: 87¢ per kilogramme
  • Longitudinal purlins: 87¢ per kilogramme
  • Structural fasteners: US$2.28 per kilogramme

Meanwhile, inverter tax credits would be the following:

  • Central inverters (>1MW): 2.5¢/W
  • Utility inverters (>170kW and ≤1 MW): 1.5¢/W
  • Commercial inverters (≥20kW and ≤170kW): 2¢/W
  • Residential inverter (≤20kW): 6.5¢/W
  • Microinverters (≤650W): 11¢/W

As Senate Democrats continue their negotiations on BBB, it is unclear how much of the bill’s solar manufacturing incentives will be included, with the party needing all 50 of its Senators to provide their backing to get it passed.

Other solar support measures included in the package are an extension and expansion of the investment tax credit (ITC) – which would also be available for standalone energy storage systems – as well as a revival of the production tax credit (PTC) for solar plants.

PV Tech Premium last week explored how policy support included in the act could accelerate US solar deployment while supporting domestic manufacturers.

Read Next

June 30, 2025
Heliene has completed the sale of Section 45X Advanced Manufacturing Production Tax Credits in association with Minnesota-based U.S. Bank.
June 26, 2025
Nextracker will supply solar tracker systems to a 550MW solar PV project in the Greek province of Western Macedonia, owned by Greek renewables developer PPC Renewables.
June 25, 2025
First Solar has sold US$311.8 million in tax credits to “a leading financial institution” under the rules set out in the IRA.
June 24, 2025
US solar tracker manufacturer GameChange Solar has signed a deal to supply trackers to 715MWp worth of solar PV capacity across South America.
June 18, 2025
US solar tracker manufacturer Array Technologies has acquired APA Solar, a producer of foundations and fixed-tilt racking for solar projects.
June 18, 2025
The US Senate Finance Committee draft bill is a “stake in the heart” of US solar manufacturing, according to Democrat senator, Ron Wyden.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA