New Applications on Hold Because of Solyndra Scandal
California –In the wake of the Solyndra scandal, California State Treasurer Bill Lockyer will ask a state panel that hands out sales tax exemptions to renewable energy manufacturers to suspend a program that benefited the now bankrupt corporation. Per the Los Angeles Times, the program run by The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is aimed at encouraging the purchase of equipment used to manufacture solar panels and other energy-saving projects.
Last year Governor Schwarzenegger signed and Senator Padilla passed SB71. This bill authorizes CAEATFA to provide eligible projects financial assistance in the form of a sales and use tax exclusion on property used for the “design, manufacture, production, or assembly” of either advanced transportation technologies or alternative energy source products, components or system, as defined.
$37 million in sales tax exemptions were approved for Solyndra, but only $25.1 million were used before it closed. In a statement released by Lockyer’s office, he said “In light of recent events we owe it to the taxpayers to see if there is more we can do to make sure we don’t give their money to companies headed for a fall.”