Bloomberg News

Solyndra Case May Cause Scrutiny of Companies Seeking Tax Break

October 07, 2011

Oct. 7 (Bloomberg) -- California may limit awards from a program that gave a $25.1 million tax break to Solyndra LLC, the now-bankrupt solar-panel maker, or scrutinize the finances of recipients, under recommendations to state lawmakers.

The most-populous state also should consider a way to recoup tax breaks granted to companies that leave California or go bankrupt, according to a report scheduled for consideration Oct. 11 by a pair of state Senate committees.

Lawmakers are weighing changes to a 2010 program that has given out about $104 million in projected tax breaks to so- called green companies, including $32 million already used. The state agency that runs the program, the Alternative Energy and Advanced Transportation Financing Authority, said it may put new awards on hold while reviewing the Solyndra affair.

“We’re just putting this out for consideration for the Legislature, to gauge their preference,” said Joe DeAnda, a spokesman for state Treasurer Bill Lockyer, the chairman of the financing authority.

Solyndra received the largest exemption. The Fremont-based manufacturer, which obtained a $535 million federal loan guarantee in 2009, sought bankruptcy court protection Sept. 6.

--Editors: Pete Young, Ted Bunker

To contact the reporter on this story: James Nash in Sacramento at Jnash24@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net.


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