FSLR · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

FIRST SOLAR, INC. · 2026-10-29 · Importance 57 · Surprise 64 · Matches filing data

Income tax expense for the nine months ended September 30, 2026 increased 77.7% to $39.489 million from $22.225 million in 2025, while the effective tax rate rose to 2.9% from 2.2%. The increase primarily reflected higher global minimum tax expense, a prior-year discrete tax benefit, and higher current-period pretax income, partly offset by higher advanced manufacturing production credits. In the third quarter, First Solar recorded a $5.034 million income tax benefit, compared with $4.402 million of tax expense in the prior-year quarter. The quarterly benefit reflected higher Section 45X credits and more income earned in lower-tax jurisdictions, partly offset by global minimum tax expense and the prior-year discrete benefit.

Key facts

• Income tax expense for the nine months ended September 30, 2026 was $39.489 million, compared with $22.225 million in 2025, an increase of $17.264 million, or 77.7%. source
• First Solar's Malaysia tax holiday is scheduled to expire in 2027 and exempts substantially all Malaysia income from income tax, subject to continued compliance with employment and investment thresholds. source
• First Solar's Vietnam tax incentive is scheduled to expire at the end of 2036 and provides reduced tax rates on Vietnam income, subject to continued compliance with revenue and R&D spending thresholds. source
• Income tax benefit for the three months ended September 30, 2026 was $5.034 million, compared with income tax expense of $4.402 million in 2025. source
• The effective tax rate was (0.9)% for the three months ended September 30, 2026 versus 1.0% in 2025, and 2.9% for the nine months versus 2.2% in 2025. source
• Three-month income tax benefit increased primarily due to higher advanced manufacturing production credits and more income earned in lower-tax jurisdictions, partly offset by higher global minimum tax expense and a prior-year discrete tax benefit. source
• The U.S. federal corporate income tax rate is 21%; tax rates in Singapore, Malaysia, Vietnam, and India are 17%, 24%, 20%, and 17%, respectively. source

Impact estimates