GM's tax break worth as much as $45 billion: filing

DETROIT Wed Nov 3, 2010 10:41am EDT

DETROIT (Reuters) - General Motors Co GM.UL can get a tax break of up to $45 billion as part of its U.S. government-financed restructuring, documents filed with federal regulators earlier this year showed.

The Wall Street Journal earlier reported that GM would not have to pay federal taxes on up to $50 billion in profits. A later version of this story revised this figure to about $45 billion.

This figure also includes $18.88 billion of carry-forwards, according to the automaker's annual filing from April.

Under the Troubled Asset Relief Program, losses racked up by GM before its government-funded bankruptcy can be used to offset its future tax liabilities.

(Reporting by Deepa Seetharaman, editing by Gerald E. McCormick)

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Comments (1)
JCnTN wrote:
If this is legally a different entity than the original corp…why is this being allowed?

Nov 03, 2010 1:04pm EDT  --  Report as abuse
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