GM Could Be Tax-Free for Years

How’s this for fair? Trouble-plagued General Motors has reported that the government takeover of the company has left them with a tax break that could be worth as much as $45 million. GM, which will soon promote to investors its return as a publicly traded company, carries tax benefit status from a “tax-loss carry-forwards” and other provisions, which allow companies to use previous losses and pension-related costs to protect them for up to 20 years. The U.S. government ruled last year that companies that used bailout money will be eligible for these restrictions. According to some sources, the government want to make the bailed-out companies more attractive to investors.