First Solar became perhaps the biggest beneficiary from $1 trillion in environmental spending enacted under the Inflation Reduction Act, which Biden signed into law in 2022 after it cleared Congress solely with Democratic votes. Since then, First Solar’s stock price has doubled and its profits have soared thanks to new federal subsidies that could be worth up to $10 billion over a decade. The success has delivered a massive windfall to a small group of Democratic donors who invested heavily in the company.
… First Solar offers an example of how that legislation, shaped by lobbyists and potentially influenced by a flood of campaign cash, can yield mammoth returns to the well-connected.
… Company officials cultivated a constituency with Democrats during President Barack Obama’s administration, which in turn subsidized them through billions of dollars in government-backed loans. When the Biden administration started writing rules to implement the Democrats’ new law, First Solar executives and lobbyists met at least four times in late 2022 and 2023 with administration officials, including John Podesta, who oversaw the measure’s environmental provisions.
… The company will benefit from billions of dollars in lucrative tax credits for domestic clean energy manufacturers … Last December, First Solar agreed to sell roughly $650 million of these credits to a tech company — providing a massive influx of cash, courtesy of the US government.
More:
First Solar spent $4.3 million on lobbying, won $10 BILLION in US subsidies, & “delivered a massive windfall to a small group of Democratic donors” along the way.
Heckuva business model:
The Economist on fiscal indulgences:
“As the campaign contributions jingle into the campaign funds, the tax revenues fly out”, he adds. As a result, “we have categories within categories within subgroups, all at different prices, deductions or exemptions that release some elites from the published tax rates.”