Even the I.R.S. is battling Solyndra over its attempts to make taxpayers pay twice for the company’s failure.
As part of President Obama’s initiatives to promote green energy, Solyndra received $535 million in government loans to manufacture solar panels. The company is now in bankruptcy court.
The company had sold off its assets and fired nearly 1000 workers. The only real asset left is up to $975 million in net operating losses that can be used against future operating income on tax returns.
Since Solyndra has demonstrated that its business is not viable, these losses would not normally have any value.
What Solyndra seeks to do is to create another corporate entity that would “move” these losses to the new company. It wants the court to liquidate Solyndra debts and pay off creditors for pennies on the dollar. Then this corporate shell would merge with another profitable business, which could then use the tax losses against their profits. The I.R.S. is asking the courts to reject the proposed offer.
So recapping, Solyndra has received $535 million in federal loans never to be repaid, accumulated $12 million in solar tax credits, and now wants to be able to deduct up to $975 million in operating losses. Taxpayers are being hit again, 1000 people lost their jobs, and China makes most of the U.S.’s solar panels.
So much for the government picking winners and losers.