The bankruptcy of Fisker Automotive could end up costing the U.S. government much more than the $168 million it loaned to the maker of the Karma plug-in hybrid sports car, Reuters reported yesterday. According to its bankruptcy filing on Friday, Fisker owns tax breaks worth $320 million. Fisker's bankruptcy papers said the Southern California-based company plans to sell its automotive operations to a business affiliated with Hong Kong tycoon Richard Li, but it will hold on to the tax breaks after it emerges from bankruptcy. Fisker piled up some $800 million in net operating losses in recent years, which have a future cash benefit worth approximately $320 million, according to the bankruptcy filing. The U.S. Department of Energy extended the company a $529 million credit line in 2009 as part of the Obama administration's efforts to boost advanced vehicle development in the U.S. The credit line was frozen in 2011 before it could be fully drawn.
