Enphase Energy Inc. (NASDAQ: ENPH) sold $235 million in advanced manufacturing production tax credits to a financial institution for $218.6 million, according to a filing with securities regulators.

The solar equipment manufacturer entered into the tax credit transfer agreement on March 31, 2026. The credits were generated from production of eligible components in the United States and their sale to third parties during calendar year 2025 under Section 45X of the Internal Revenue Code.

The company sold the credits at 93% of face value, resulting in a discount of approximately $16.5 million. Enphase also incurred about $2.5 million in transaction-related fees.

The company stated it expects to exclude these amounts from its non-GAAP financial measures for the first quarter of 2026 because they relate to tax credits generated in the prior fiscal year and do not reflect ongoing operating performance. However, the inclusion of these amounts in GAAP financial measures will reduce the company's GAAP gross margin for the first quarter of 2026 by approximately 6.7 percentage points compared to prior guidance.

The agreement includes standard covenants, indemnification provisions and termination clauses typical for tax credit sale transactions. The purchase price was paid in a single installment on the effective date, subject to customary closing conditions.