TOYO Expects U.S. Subsidiary to Be Eligible to Claim Section 45X Tax Credits for 2025

Rhea-AI Summary

TOYO (Nasdaq: TOYO; OTC: TOYWF) announced that, based on a third-party tax advisory firm's compliance analysis of production and sales at its Toyo Solar Texas facility, its U.S. subsidiary Toyo Solar Texas LLC expects to be eligible to claim Section 45X Advanced Manufacturing Production Credits for the taxable year ending December 31, 2025.

Section 45X provides per-unit tax credits for eligible components produced in the U.S. and sold in qualifying transactions. According to TOYO, Toyo Solar Texas is a key element of its U.S. manufacturing platform, and the expected eligibility is described as an important milestone in the company’s U.S. expansion and domestic solar supply chain strategy.

Positive

• Expected Section 45X credit eligibility for 2025 at Toyo Solar Texas
• Third-party compliance analysis supports anticipated Section 45X qualification
• Milestone in TOYO’s U.S. manufacturing expansion and domestic solar supply chain strategy

Negative

• None.

Market reaction after 2025 Section 45X eligibility: TOYWF -4.36% in the Jul 21 session

-4.36%

-4.36% Session close to close

In the Jul 21 session, TOYWF declined 4.36%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

TOYO's June 26 offering was followed by -10.71%, adding a negative financing comparison to this expe...

Analysis

TOYO's June 26 offering was followed by -10.71%, adding a negative financing comparison to this expected Section 45X eligibility announcement. The principal risk was that eligibility remained expected, with no recent insider activity reported.

Key Figures

Tax credit section: Section 45X Taxable year: December 31, 2025 Announcement date: July 21, 2026

3 metrics

Tax credit section Section 45X Advanced Manufacturing Production Credits

Taxable year December 31, 2025 Year for which eligibility is expected

Announcement date July 21, 2026 Publication date

Historical Context

5 past events · Latest: Jul 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Investor webcast	Neutral	+1.6%	Participation in a Citi investor webcast focused on space economy and AI applications.
Jul 01	CFO appointment	Positive	+18.5%	Yasunari Harada became CFO and director, replacing the departing Taewoo Chung.
Jun 29	Index inclusion	Positive	-2.4%	TOYO joined the Russell 3000 and Russell Microcap indexes effective June 26.
Jun 26	Registered offering	Negative	-10.7%	TOYO closed a $50 million registered direct offering involving shares and warrants.
Jun 24	Registered offering	Negative	-44.6%	TOYO announced a registered direct offering intended to fund a Texas HJT facility.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

TOYO's recent news reactions were mixed, with positive responses to leadership news but negative responses to offering announcements.

Key Terms

advanced manufacturing production credits

1 terms

advanced manufacturing production credits regulatory

"Section 45X Advanced Manufacturing Production Credits for the taxable year"

Advanced manufacturing production credits are government incentives that give manufacturers a per-unit tax break or direct payment for making specified high-tech or strategically important products, such as renewable-energy components, batteries, or microchips. They matter to investors because these credits lower production costs or boost cash flow for qualifying makers, similar to receiving a per-item rebate that improves profit margins, competitiveness and the value of companies that can claim them.

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TOKYO, July 21, 2026 /PRNewswire/ -- TOYO Co., Ltd. (Nasdaq: TOYO; OTC: TOYWF) ("TOYO" or the "Company"), a solar manufacturing company, announced today that, based on a compliance analysis of production and sales activity at its Toyo Solar Texas facility conducted by a third-party tax advisory firm engaged by the Company, its U.S. subsidiary, Toyo Solar Texas LLC, expects to be eligible to claim Section 45X Advanced Manufacturing Production Credits for the taxable year ended December 31, 2025.

Section 45X of the Internal Revenue Code provides a per-unit credit for eligible components produced by a taxpayer in the United States and sold in qualifying transactions.

Toyo Solar Texas is a key part of the Company's U.S. manufacturing platform. The expected eligibility represents an important milestone in TOYO's U.S. expansion strategy and reflects progress in establishing the production controls, sales documentation, and product traceability processes needed to support domestic module manufacturing.

"Our expected eligibility for Section 45X credits for 2025 marks an important step in the development of our U.S. manufacturing platform," said Takahiko Onozuka, Chairman and Chief Executive Officer of TOYO. "It reflects the early contribution of Toyo Solar Texas and the work our team has done to establish disciplined production, traceability, and compliance processes. As we continue to develop our U.S. operations, we remain focused on expanding manufacturing capacity and strengthening a reliable domestic solar supply chain."

About TOYO Co., Ltd.

TOYO is a solar manufacturing company that is committed to becoming a vertically integrated solar manufacturer in the global market, integrating the upstream production of wafers and silicon, midstream production of solar cells, downstream production of photovoltaic modules, and potentially other stages of the solar power supply chain. TOYO is well-positioned to produce high-quality solar cells and modules at a competitive scale and cost.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "estimate," "plan," "forecast," "intend," "will," "expect," "anticipate," "believe," or "target." They include expectations regarding eligibility for Section 45X credits; the completion and validity of tax filings and elections; the amount, accounting treatment, timing, and realization of any credits ultimately claimed; final production and sales data; component and sales eligibility; supporting documentation and tax authority review; changes in tax laws, regulations, or guidance; the ramp-up and expansion of Toyo Solar Texas; and TOYO's U.S. manufacturing and supply chain strategy. These statements are based on management's current expectations and assumptions and are not predictions of actual performance.

These statements involve risks and uncertainties that may cause actual results to differ materially, including differences in final production or sales data; failure of components or transactions to satisfy applicable requirements; incomplete or ineffective elections, records, or supporting documentation; differing positions by tax authorities; changes in law or guidance; differences in accounting recognition or actual realization; and other risks described in TOYO's filings with the United States Securities and Exchange Commission. Except as required by law, TOYO undertakes no duty to update these statements.

Contact Information:

For TOYO Co., Ltd.
IR@toyo-solar.com 

Crocker Coulson
Email: crocker.coulson@aumadvisors.com
Tel: (646) 652-7185

View original content:https://www.prnewswire.com/news-releases/toyo-expects-us-subsidiary-to-be-eligible-to-claim-section-45x-tax-credits-for-2025-302830784.html

SOURCE TOYO Co., Ltd.

FAQ

What did TOYO (NASDAQ: TOYO) announce about Section 45X tax credits for 2025?

TOYO announced its U.S. subsidiary expects to be eligible to claim Section 45X tax credits for 2025. According to TOYO, this expectation follows a compliance analysis of Toyo Solar Texas’s production and sales conducted by a third-party tax advisory firm.

Which TOYO subsidiary is expected to qualify for Section 45X credits in 2025?

TOYO said its U.S. subsidiary Toyo Solar Texas LLC expects to be eligible for Section 45X credits for 2025. According to TOYO, the assessment is based on a third-party compliance review of production and sales activity at the Toyo Solar Texas facility.

What is Section 45X and how does it relate to TOYO’s U.S. operations (TOYO, TOYWF)?

Section 45X provides per-unit tax credits for eligible components produced in the U.S. and sold in qualifying transactions. According to TOYO, Toyo Solar Texas’s expected eligibility aligns with its strategy to build a stronger U.S. manufacturing platform and domestic solar supply chain.

For which tax year does TOYO expect Section 45X eligibility at Toyo Solar Texas?

TOYO expects Toyo Solar Texas LLC to be eligible to claim Section 45X credits for the taxable year ending December 31, 2025. According to TOYO, this expectation follows a detailed compliance analysis by an external tax advisory firm.

How does the expected Section 45X eligibility support TOYO’s U.S. expansion strategy?

TOYO states that expected Section 45X eligibility marks an important step in developing its U.S. manufacturing platform. According to TOYO, it reflects progress in production controls, sales documentation, and product traceability needed for domestic solar module manufacturing.

What role does Toyo Solar Texas play in TOYO’s U.S. manufacturing platform?

Toyo Solar Texas is described by TOYO as a key part of its U.S. manufacturing platform. According to TOYO, the facility’s early contribution and established compliance processes support expansion of capacity and a more reliable domestic solar supply chain.