Skip to comments.Report: Solyndra backers could get more tax breaks
Posted on 09/09/2012 6:01:19 AM PDT by grundle
Bankrupt solar panel maker Solyndra said Friday it could get $23 million in additional tax breaks, a development that angered Republicans who have said the firm got a federal loan guarantee as a political favor.
Reuters reported that a bankruptcy judge said on Friday that Solyndras creditors could vote on the bankruptcy plan with the additional tax breaks. A final decision would come Oct. 17 -- just weeks before the Nov. 6 election.
Solyndra already had disclosed it could be eligible for $341 million-worth of tax breaks.
The revelation that more tax breaks could be in the offing bought charges from Republicans that the loan guarantee to Solyndra, whose venture capital backer had ties to the Obama administration, was spoils for support.
One year after Solyndra filed for bankruptcy, we continue to learn the ugly truth of Solyndras sweetheart restructuring deal, House Energy and Commerce Chairman Fred Upton (R-Mich.) and subcommittee on Oversight and Investigations Chairman Cliff Stearns (R-Fla.) said in a Friday statement to The Hill.
The Internal Revenue Service plans to dispute the bankruptcy plan, Reuters noted.
The Energy Department (DOE), which is in charge of the loan guarantee program, referred The Hill to the Justice Department (DOJ) on the matter. DOJ did not immediately respond to requests for comment.
The news comes as the House is set to vote on the No More Solyndras Act next week. The bill would sunset the clean energy program that awarded the California company a $535 million loan guarantee in 2009.
Solyndra has become the symbol for GOP attacks against Obamas energy policies. They contend it shows how government intervention in the marketplace is ill advised, and that clean energy technology is not ready to compete with cheaper fossil fuels.
The GOP and presidential nominee Mitt Romney have adopted an energy platform that includes expanded fossil fuel drilling as its centerpiece.
Despite the possibility of tax breaks, the California firm has recently said it might not be able to repay the federal government for its loan guarantee.
With Solyndras investors potentially emerging from bankruptcy with over $300 million in tax breaks while taxpayers will see over half a billion dollars in losses is the harshest of reminders that Solyndra was a bad bet from day one and the Obama administration let us all down, Upton and Stearns said.
Those tax breaks would redeem venture capital firms Madrone Partners and Argonaut Ventures, the latter being the investment company tied to Democratic fundraiser George Kaiser.
Though Republicans have long painted the Solyndra debacle as an improper reward for campaign contributions, an 18-month investigation of the administrations actions revealed little to confirm that. But the probe did note that a restructuring plan in 2011 put private backers ahead of taxpayers if the company collapsed.
Upton and Stearns said Fridays news recalled the administrations missteps.
In Solyndra, the Obama administration delivered a raw deal to taxpayers, who stand to lose over half a billion dollars while billionaire Obama backer George Kaiser and Solyndras other investors could walk away from the bankruptcy with hundreds of millions of dollars in tax breaks, they said.
I am asking all Freepers who are disgusted by Obama's cronyism to please take a look at it, and please show it to others. Thank you.
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